30 August 2013
The difference is that services in negative list are not at all taxable as they have been excluded from the meaning of ‘service’ itself u/s 66B. Negative list contained in section 66D. As against this, exempted services are services by itself, but exempt from levy of Service Tax by way of Notification issued by the Central Government. . Also, amendments to negative list can be made only by Parliament by way of amendment to the Finance Act whereas exemptions could be enlarged or curtailed on the basis of notification.
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