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Kuldeep Gauniyal (Sr Manager - Legal)     22 June 2012

Service tax negative list


While releasing the Guidance Paper on 20 June 2012, Hon'ble Finance Minister also announced some new exemptions as follows:

(a)  Service provided by advocates to other advocates and business entities upto a turnover of Rs. 10 lakh in the preceding financial year.

(b)  Exemption to firm of advocates on the same lines as individual advocates.

(c)  Auxiliary educational services and renting of immovable property provided by educational institutions in respect of education exempt from service tax.

(d)  Exemption to services provided to Government and local authorities also extended to governmental authorities, government authority defined as any entity established by a special law with 90% or more control by Government and set up to carry out any of the functions entrusted to municipalities under Article 243W of the Constitution.

(e)  Services relating to works contract to a scheme under JNNURM or Rajiv Awaas Yojna.

(f)  Construction of monorail or metro projects.

(g)  Transportation of passengers in a ropeway, cable car or air-tram way.

(h)  Services provided to Government, local authorities or a governmental authority for the repairs and maintenance of an aircraft.

 (i)  Services by sub-contractors by way of works contract to another main contractor providing works contract services which are exempt.

(j)  Service providing in a taxable territory where both service provider and service receiver are located in a non-taxable territory.

(k)  Services of public libraries by way of leading of books, publications or any other knowledge enhancing content or material.

 (l)  Services by Employees State Insurance Corporation (ESIC) to persons governed under Employees Insurance Act.

(m)  Services by way of transfer of a going concern as a whole or an independent part thereof.

(n)  Services by way of public conveniences such as provision of facilities of bathroom, washroom, lavatory urinals or toilets.

With the new additions, the number of exemptions in the 'mega exemption' notification, popularly referred as 'exempt list' has gone up to 38.


 1 Replies

Neha Sharma (Student)     28 June 2012

Without any clarity on the implementation of Negative List, i firmly feel that it shd be postponed..

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