Vide Finance Act, 2012 Concept of
Negative list of Services been introduced according to which all services
except the those specified in Negative list are liable for Service Tax. First Notification in
the regards was Principal Notification No. 25/2012 – Service
Tax, dated 20th June, 2012.
Details of Notifications effecting
Subsequent Amendment to Negative List of Services are as follows :-
1. Notification No. 6/2015-Service Tax, Dated: March 01, 2015- Changes in Mega
Exemption List of Services Vide Budget 2015
2. Notification No.17/2014–Service Tax, dated: 20th August, 2014 – Haj and Mansarovar
pilgrimage gets Service Tax exemption
3. Notification No.06/2014 –Service Tax- Dated: 11th July, 2014- Budget 2014 –
Changes in Mega Exemption List of Services
4. Notification No.04/2014 – Service Tax, dated 17th February, 2014- Exempting Services
related to ‘Rice’ and Services provided by cord blood banks
5. Notification No. 02/2014 – Service Tax, Dated– 30th January,
2014– Change in Definition of governmental authority in Mega Exemption
Notification
6. Notification No.01/2014- Service Tax, dated 10th January,
2014 – Regarding Exemption to Services by way of sponsorship of sporting events
organised
7. Notification No.14/2013- Service Tax, dated 22nd October,
2013 – No Services tax on serving of food in canteen by Factory
8. Notification No.13/2013 – Service Tax, Dated- 10th September,
2013 – Service Tax Exemption to National Skill Development Corporation &
others related to it
9. Notification No. 49/2012 – Service Tax, Dated- 24th December,
2012 – Govt exempts Janashree and Aam Aadmi Bima Yojana from service tax
10. Notification No. 44/2012-Service Tax, dated 7th August,
2012– Service Tax exemption extended to slaughtering of all animals
Changes in the
Negative List – Sec. 66D of the Act vide Budget 2015 with effect from
01.04.2015
Levy of service tax on any service
received by a business entity from Government or local authority
·
Presently, support services provided by Government or local authority to
business entities are liable to service tax.
·
It is proposed to extend the levy to all the services provided by
Government or local authority to a business entity. Correspondingly to avoid
any interpretational issues, the term ‘Government has been defined under Sec.
65B(26A) of the Act to mean departments of Central Government, State Government
and Union Territory.
Levy of service tax on processing of
alcoholic liquor for human consumption
·
Hitherto, any process amounting to manufacture or production of goods
including processing of alcoholic liquor for human consumption was not leviable
to service tax.
·
The said definition alongwith entry 30 of Mega Exemption Notification is
amended to exclude the processes for production or manufacture of alcoholic
liquor for human consumption.
·
With these amendments, such process (including intermediate production
process) relating to alcoholic liquor undertaken either by principal or job
worker will be taxable.
Levy of service tax on admission to
an entertainment event or access to amusement facility
·
Sec. 66D(j) of the Act excluded consideration charged for admission to
entertainment event or access to amusement facility from the ambit of service
tax. It is proposed to withdraw the said exemption.
·
Accordingly, service tax shall be levied on fee charged for services
provided by amusement parks, amusement arcades, water parks and theme
parks.
·
Further, fees for admission to an entertainment event of concerts,
pageants, musical performances concerts, award functions and sporting events
will be liable to service tax. However by way of a specific entry in Mega
Exemption notification, exemption has been provided to events where the fee
does not exceed Rs. 500 per person. The recognized sporting events where the
participants represent any district, state, zone or country shall however
continue to be exempted.
Levy of service tax on conducting a
chit fund and distribution/selling of lottery
·
Hitherto, the services of betting, gambling or lottery were not leviable
to service tax. Considering the ensuing litigations on the taxability of
services provided by the foreman of a chit fund, distributor/selling agent of
lottery and money changer, a specific explanation has now been proposed to be
introduced in Clause (i) of the Negative List to clarify that the terms ‘betting,
gambling or lottery’ shall not include such services as specified above.
Corresponding change has also been incorporated in the definition of
service wherein the above services are now specifically included and hence
taxable.
On the basis of Analysis of above
mentioned Notifications we have Compiled Updated List of Services Under
Negative List as on 01.04.2015 on which no Service tax is payable :-
We have kept the Serial No. in
Negative List Compiled below as per Various Notification issued by CBEC from
time to time :-
1.
|
Services provided to the United Nations or a specified international
organization;
|
2.
|
(i) Health care services by a clinical establishment, an authorised
medical practitioner or para-medics;
|
(ii) Services provided by way of transportation of a patient in an
ambulance, other than those specified in (i) above;
|
|
2A.
|
Services provided by cord blood banks by way of preservation
of stem cells or any other service in relation to such preservation;
|
2B.
|
Services provided by operators of the Common Bio-medical Waste
Treatment Facility to a clinical establishment by way of treatment or
disposal of bio-medical waste or the processes incidental thereto;
|
3.
|
Services by a veterinary clinic in relation to health care of animals
or birds;
|
4.
|
Services by an entity registered under section 12AA of the Income tax
Act, 1961 (43 of 1961) by way of charitable activities;
|
5.
|
Services by a person by way of-
|
(a) renting of precincts of a religious place meant for general public;
or
|
|
(b) conduct of any religious ceremony;
|
|
5A.
|
Services by a specified organisation in respect of a religious
pilgrimage facilitated by the Ministry of External Affairs of the Government
of India, under bilateral arrangement;
|
6.
|
Services provided by-
|
|
(a) an arbitral tribunal to -(i) any person other than a
business entity; or(ii) a business entity with a turnover up to rupees ten
lakh in the preceding financial year;
|
|
(b) an individual as an advocate or a partnership firm of advocates by
way of legal services to,-(i) an advocate or partnership firm of advocates
providing legal services ;(ii) any person other than a business entity; or
(iii) a business entity with a turnover up to rupees ten lakh in the
preceding financial year; or
|
|
(c) a person represented on an arbitral tribunal to an arbitral
tribunal;
|
7
|
Omitted
|
8.
|
Services by way of training or coaching in recreational activities
relating to arts, culture or sports;
|
9.
|
Services provided,-
|
(a) by an educational institution to its students, faculty and staff;
|
|
(b) to an educational institution, by way of,-(i) transportation of
students, faculty and staff;(ii) catering, including any mid-day meals scheme
sponsored by the Government;
(iii) security or cleaning or house-keeping services performed in such
educational institution;
(iv) services relating to admission to, or conduct of examination by,
such institution;
|
|
9A
|
Any services provided by, _
|
|
(i) the National Skill Development Corporation set up by the
Government of India;
|
|
(ii) a Sector Skill Council approved by the National Skill Development
Corporation;
|
|
(iii) an assessment agency approved by the Sector Skill Council or the
National Skill Development Corporation;
|
|
(iv) a training partner approved by the National Skill Development
Corporation or the Sector Skill Council in relation to (a) the National Skill
Development Programme implemented by the National Skill Development
Corporation; or (b) a vocational skill development course under the National
Skill Certification and Monetary Reward Scheme; or (c) any other
Scheme implemented by the National Skill Development Corporation.
|
10.
|
Services provided to a recognised sports body by-
|
(a) an individual as a player, referee, umpire, coach or team manager
for participation in a sporting event organized by a recognized sports body;
|
|
(b) another recognised sports body;
|
|
11.
|
Services by way of sponsorship of sporting events organised,-
|
(a) by a national sports federation, or its affiliated federations,
where the participating teams or individuals represent any district, State,
zone or Country;
|
|
(b) by Association of Indian Universities, Inter-University Sports
Board, School Games Federation of India, All India Sports Council for the
Deaf, Paralympic Committee of India or Special Olympics Bharat;
|
|
(c) by Central Civil Services Cultural and Sports Board;
|
|
(d) as part of national games, by Indian Olympic Association; or
|
|
(e) under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA) Scheme;
|
|
12.
|
Services provided to the Government, a local authority or a
governmental authority by way of construction, erection, commissioning,
installation, completion, fitting out, repair, maintenance, renovation, or
alteration of –
|
(a) Omitted
|
|
(b) a historical monument, archaeological site or remains of national
importance, archaeological excavation, or antiquity specified under the
Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of
1958);
|
|
(c) Omitted
|
|
(d) canal, dam or other irrigation works;
|
|
(e) pipeline, conduit or plant for (i) water supply (ii) water
treatment, or (iii) sewerage treatment or disposal;
|
|
(f) Omitted
|
|
13.
|
Services provided by way of construction, erection, commissioning,
installation, completion, fitting out, repair, maintenance, renovation, or
alteration of,-
|
(a) a road, bridge, tunnel, or terminal for road transportation for
use by general public;
|
|
(b) a civil structure or any other original works pertaining to a
scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas
Yojana;
|
|
(c) a building owned by an entity registered under section 12 AA of
the Income tax Act, 1961(43 of 1961) and meant predominantly for religious
use by general public;
|
|
(d) a pollution control or effluent treatment plant, except located as
a part of a factory; or a structure meant for funeral, burial or cremation of
deceased;
|
|
14.
|
Services by way of construction, erection, commissioning, or
installation of original works pertaining to,-
|
(a) railways, including monorail or metro;
|
|
(b) a single residential unit otherwise than as a part of a
residential complex;
|
|
(c) low- cost houses up to a carpet area of 60 square metres per house
in a housing project approved by competent authority empowered under the
‘Scheme of Affordable Housing in Partnership’ framed by the Ministry of
Housing and Urban Poverty Alleviation, Government of India;
|
|
(d) post- harvest storage infrastructure for agricultural produce
including a cold storages for such purposes; or
|
|
(e) mechanised food grain handling system, machinery or equipment for
units processing agricultural produce as food stuff excluding alcoholic
beverages;
|
|
|
15. Services provided by way of temporary transfer or permitting the
use or enjoyment of a copyright,-
|
(a) covered under clause (a) of sub-section (1) of section 13 of the
Copyright Act, 1957 (14 of 1957), relating to original literary, dramatic,
musical or artistic works; or
|
|
(b) of cinematograph films for exhibition in a cinema hall or cinema
theatre;
|
|
16.
|
Services by an artist by way of a performance in folk or classical art
forms of (i) music, or (ii) dance, or (iii) theatre, if the consideration
charged for such performance is not more than one lakh rupees:Provided that
the exemption shall not apply to service provided by such artist as a brand
ambassador.
|
17.
|
Services by way of collecting or providing news by an independent
journalist, Press Trust of India or United News of India;
|
18.
|
Services by a hotel, inn, guest house, club or campsite, by whatever
name called, for residential or lodging purposes, having declared tariff of a
unit of accommodation below one thousand rupees per day or equivalent;
|
19.
|
Services provided in relation to serving of food or beverages by a
restaurant, eating joint or a mess, other than those having the facility of
air-conditioning or central air-heating in any part of the establishment, at
any time during the year;
|
19A.
|
Services provided in relation to serving of food or beverages by a
canteen maintained in a factory covered under the Factories Act, 1948 (63 of
1948), having the facility of air-conditioning or central air-heating at any
time during the year.
|
20.
|
Services by way of transportation by rail or a vessel from one place
in India to another of the following goods –
|
(a) Omitted
|
|
(b) relief materials meant for victims of natural or man-made
disasters, calamities, accidents or mishap;
|
|
(c) defence or military equipments;
|
|
(d) Omitted
|
|
(e) Omitted
|
|
(f) newspaper or magazines registered with the Registrar of
Newspapers;
|
|
(g) railway equipments or materials;
|
|
(h) agricultural produce;
|
|
(i) milk, salt and food grain including flours, pulses and rice;
|
|
(j) chemical fertilizer, organic manure and oil cakes;
|
|
(k) cotton, ginned or baled.
|
|
21.
|
Services provided by a goods transport agency, by way of transport in
a goods carriage of,-
|
(a) agricultural produce;
|
|
(b) goods, where gross amount charged for the transportation of goods
on a consignment transported in a single carriage does not exceed one
thousand five hundred rupees;
|
|
(c) goods, where gross amount charged for transportation of all such
goods for a single consignee does not exceed rupees seven hundred fifty;
|
|
(d) milk, salt and food grain including flours, pulses and;
|
|
(e) chemical fertilizer, organic manure and oil cakes;
|
|
(f) newspaper or magazines registered with the Registrar of
Newspapers;
|
|
(g) relief materials meant for victims of natural or man-made
disasters, calamities, accidents or mishap; or
|
|
(h) defence or military equipments;
|
|
(i) cotton, ginned or baled.
|
|
22.
|
Services by way of giving on hire –
|
(a) to a state transport undertaking, a motor vehicle meant to carry
more than twelve passengers; or
|
|
(b) to a goods transport agency, a means of transportation of goods;
|
|
23.
|
Transport of passengers, with or without accompanied belongings, by –
|
(a) air, embarking from or terminating in an airport located in the
state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland,
Sikkim, or Tripura or at Bagdogra located in West Bengal;
|
|
(b) non-airconditioned contract carriage other than radio taxi, for
transportation of passengers, excluding tourism, conducted tour, charter or
hire; or;
|
|
(c) ropeway, cable car or aerial tramway;
|
|
24.
|
Omitted
|
25.
|
Services provided to Government, a local authority or a governmental
authority by way of –
|
(a) water supply, public health, sanitation conservancy, solid waste
management or slum improvement and up-gradation; or;
|
|
(b) repair or maintenance of a vessel
|
|
26.
|
Services of general insurance business provided under following
schemes –
|
(a) Hut Insurance Scheme;
|
|
(b) Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna (earlier
known as Integrated Rural Development Programme);
|
|
(c) Scheme for Insurance of Tribals;
|
|
(d) Janata Personal Accident Policy and Gramin Accident Policy;
|
|
(e) Group Personal Accident Policy for Self-Employed Women;
|
|
(f) Agricultural Pumpset and Failed Well Insurance;
|
|
(g) premia collected on export credit insurance;
|
|
(h) Weather Based Crop Insurance Scheme or the Modified National
Agricultural Insurance Scheme, approved by the Government of India and
implemented by the Ministry of Agriculture;
|
|
(i) Jan Arogya Bima Policy;
|
|
(j) National Agricultural Insurance Scheme (Rashtriya Krishi Bima
Yojana);
|
|
(k) Pilot Scheme on Seed Crop Insurance;
|
|
(l) Central Sector Scheme on Cattle Insurance;
|
|
(m) Universal Health Insurance Scheme;
|
|
(n) Rashtriya Swasthya Bima Yojana; or
|
|
(o) Coconut Palm Insurance Scheme;
|
|
26A.
|
Services of life insurance business provided under following schemes –
|
(a) Janashree Bima Yojana (JBY); or
|
|
(b) Aam Aadmi Bima Yojana (AABY);
|
|
(c) life micro-insurance product as approved by the Insurance
Regulatory and Development Authority, having maximum amount of cover of fifty
thousand rupees.
|
|
(d) Varishtha Pension Bima Yojana;
|
|
27.
|
Services provided by an incubatee up to a total turnover of fifty lakh
rupees in a financial year subject to the following conditions, namely:-
|
(a) the total turnover had not exceeded fifty lakh rupees during the
preceding financial year; and
|
|
(b) a period of three years has not been elapsed from the date of
entering into an agreement as an incubatee;
|
|
28.
|
Service by an unincorporated body or a non- profit entity registered
under any law for the time being in force, to its own members by way of
reimbursement of charges or share of contribution –
|
|
(a) as a trade union;
|
|
(b) for the provision of carrying out any activity which is exempt
from the levy of service tax; or
|
|
(c) up to an amount of five thousand rupees per month per member for
sourcing of goods or services from a third person for the common use of its
members in a housing society or a residential complex;
|
29.
|
Services by the following persons in respective capacities –
|
(a) sub-broker or an authorised person to a stock broker;
|
|
(b) authorised person to a member of a commodity exchange;
|
|
(c) Omitted
|
|
(d) Omitted
|
|
(e) Omitted
|
|
(f) selling agent or a distributer of SIM cards or recharge coupon
vouchers;
|
|
(g) business facilitator or a business correspondent to a banking
company or an insurance company, in a rural area; or
|
|
(h) sub-contractor providing services by way of works contract to
another contractor providing works contract services which are exempt;
|
|
30.
|
Carrying out an intermediate production process as job work in
relation to –
|
(a) agriculture, printing or textile processing;
|
|
(b) cut and polished diamonds and gemstones; or plain and studded
jewellery of gold and other precious metals, falling under Chapter 71 of the
Central Excise Tariff Act ,1985 (5 of 1986);
|
|
(c) any goods excluding alcoholic liquors for human consumption, on
which appropriate duty is payable by the principal manufacturer; or
|
|
(d) processes of electroplating, zinc plating, anodizing, heat
treatment, powder coating, painting including spray painting or auto black,
during the course of manufacture of parts of cycles or sewing machines upto
an aggregate value of taxable service of the specified processes of one
hundred and fifty lakh rupees in a financial year subject to the condition
that such aggregate value had not exceeded one hundred and fifty lakh rupees
during the preceding financial year;
|
|
31.
|
Services by an organiser to any person in respect of a business
exhibition held outside India;
|
32.
|
Omitted
|
33.
|
Services by way of slaughtering of animals;
|
34.
|
Services received from a provider of service located in a non- taxable
territory by –
|
(a) Government, a local authority, a governmental authority or an
individual in relation to any purpose other than commerce, industry or any
other business or profession;
|
|
(b) an entity registered under section 12AA of the Income tax Act,
1961 (43 of 1961) for the purposes of providing charitable activities; or
|
|
(c) a person located in a non-taxable territory;
|
|
35
|
Services of public libraries by way of lending of books, publications
or any other knowledge- enhancing content or material;
|
36.
|
Services by Employees’ State Insurance Corporation to persons governed
under the Employees’ Insurance Act, 1948 (34 of 1948);
|
37.
|
Services by way of transfer of a going concern, as a whole or an
independent part thereof;
|
38.
|
Services by way of public conveniences such as provision of facilities
of bathroom, washrooms, lavatories, urinal or toilets;
|
39.
|
Services by a governmental authority by way of any activity in
relation to any function entrusted to a municipality under article 243 W of
the Constitution.
|
40.
|
Services by way of loading, unloading, packing, storage or warehousing
of rice, cotton, ginned or baled;
|
41.
|
Services received by the Reserve Bank of India, from outside India in
relation to management of foreign exchange reserves;
|
42.
|
Services provided by a tour operator to a foreign tourist in relation
to a tour conducted wholly outside India.
|
Provisions Applicable from Such date as the Central Government
may, by notification in the Official Gazette, appoint
|
|
43.
|
Services by operator of Common Effluent Treatment Plant by way of
treatment of effluent;
|
44.
|
Services by way of pre-conditioning, pre-cooling, ripening, waxing,
retail packing, labelling of fruits and vegetables which do not change or
alter the essential characteristics of the said fruits or vegetables;
|
45.
|
Services by way of admission to a museum, national park, wildlife
sanctuary, tiger reserve or zoo;
|
46.
|
Service provided by way of exhibition of movie by an exhibitor to the
distributor or an association of persons consisting of the exhibitor as one
of its members;
|
47.
|
Services by way of right to admission to,-
|
|
(i) exhibition of cinematographic film, circus, dance, or theatrical
performance including drama or ballet;
|
|
(ii) recognised sporting event;
|
|
(iii) award function, concert, pageant, musical performance or any
sporting event other than a recognised sporting event, where the
consideration for admission is not more than Rs 500 per person..
|
Republished with Amendments