Negative list concept was introduced from 1.7.2012

Negative list means the list of services which are exempt from service tax

 

As per Section 66B of Finance Act, 1994,

service tax shall be levied on all services, except the services specified in the negative list

 

As per Sectin 66D, there are total 17 services which are in negative list as mentioned below

 

 

Note:

 

Earlier

Service tax was imposed on only some services.

List of taxable services was given, if service did not fall in the list, it was exempt

 

Now from 1 July 2012

Service tax is imposed on all services except those given in negative list

Hence, if sevice was not mentioned in negative list, it becomes taxable

 

Note:-

Though services not mentioned in negative list are normally taxable, they may be exempted by Central Government by passing exemption notification

 

 

QUESTION

What do you mean by selective and comprehensive coverage of services for the purpose of service tax? Which system is being adopted in India?

-a-

Selective Coverage

Service tax imposed on only few selected service

 

Comprehensive Coverage

Service tax is imposed on all services except some.

 

Earlier Selective Coverage approach was followed in India but from 1.7.2012.Negative list concept has been introduced.

Service tax is imposed on all Services except those mentioned in Negative List

 

Note:-

Though services not mentioned in negative list are normally taxable, they may be exempted by Central Government by passing exemption notification

-ea-

  1. Service Tax
  2. Basic Concepts of Service Tax
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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