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Sunday, 18 March 2012

Negative list of Services Proposed Section 66 D of FA 1994, In Finance bill 2012,

Proposed Section 66 D in Finance bill 2012, With regard to the negative list of Services ( 17 Nos), which shall not fall under the ambit of Service Tax Liability.

(a)  services by Government or a local authority excluding the following services to the   extent they are not covered elsewhere
(i)         services by the Department of Posts by way of speed post, express parcel post, life
insurance and agency services provided to a person other than Government;
(ii)        services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
(iii)       transport of goods or passengers; or
(iv)       support services, other than services covered under clauses (i) to (iii) above, provided to business entities;

(b) services by the Reserve Bank of India;

(c) services by a foreign diplomatic mission located in India;

(d) services relating to agriculture by way of—
(i)         agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or seed testing;
(ii)        supply of farm labour;
(iii)       processes carried out at an agricultural farm including tending, pruning, cutting,
harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
(iv)      renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;
(v)        loading, unloading, packing, storage or warehousing of agricultural produce;
(vi)       agricultural extension services;
(vii)      services by any Agricultural Produce Marketing Committee or Board or services
provided by a commission agent for sale or purchase of agricultural produce;

(e) trading of goods;

(f) any process amounting to manufacture or production of goods;

(g) selling of space or time slots for advertisements other than advertisements broadcast   by radio or television;

(h) service by way of access to a road or a bridge on payment of toll charges;

(i) betting, gambling or lottery;

(j) admission to entertainment events or access to amusement facilities;

(k)transmission or distribution of electricity by an electricity transmission or distribution utility;

(l) services by way of—
(i)         pre-school education and education up to higher secondary school or equivalent;
(ii)        education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
(iii)       education as a part of an approved vocational education course;
(m) services by way of renting of residential dwelling for use as residence;

(n) services by way of—
(i)         extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;
(ii)        inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange or amongst banks and such dealers;

(o) service of transportation of passengers, with or without accompanied belongings, by—
(i)         a stage carriage;
(ii)        railways in a class other than—
(A) first class; or
(B) an air conditioned coach;
(iii)       metro, monorail or tramway;
(iv)       inland waterways;
(v)        public transport, other than predominantly for tourism purpose, in a vessel of less
than fifteen tonne net; and
(vi)       metered cabs, radio taxis or auto rickshaws;

(p) services by way of transportation of goods—
(i) by road except the services of—
(A) a goods transportation agency; or
(B) a courier agency;
(ii) by an aircraft or a vessel from a place outside India to the first customs station of
landing in India; or
(iii) by inland waterways;

(q) funeral, burial, crematorium or mortuary services including transportation of the deceased.

3 comments:

  1. Chetta, is the revision in the service tax rates from 10 to 12 percentage immediately applicable??

    ReplyDelete
    Replies
    1. Rate Increase by insertion of new sec 66B, therefore effect only after passing FB 2012.

      Delete