Negative list

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2013 Plz tell me where would i get all the case laws relating to negative list of services??
i need it very urgently to complete my project..thank u

Vipul Baviskar

Vipul Baviskar (Expert)
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24 March 2013 Negative list of services means that all services, excluding those specified in negative list will be subject to service tax. However, in addition to items included in negative list, there will be exemptions, abatements and composition schemes as issued by the CBEC from time to time.

The Mega Exemption Notification issued by the CBEC and the issuance of guidance paper on the new approach to service tax has mentioned 38 services on which service tax shall be exempt. All the other services, i.e. which are not mentioned in the negative list, will attract service tax liability.

Some of the services covered in the negative list category are as follows:

i) Health care services by a clinical establishment, an authorised medical practitioner or para-medics

ii) Services provided by an individual as an advocate or a partnership firm of advocates by way of legal services to ;

a) an advocate or partnership firm of advocates providing legal services

b) any person other than a business entity;

c) a business entity with a turnover up to rupees ten lakh in the preceding financial year

iii) Services provided to a recognised sports body bya) 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

iv) auxiliary educational services and renting of immovable property by educational institutions in respect of education

v) Services by way of training or coaching in recreational activities relating to arts, culture or sports

vi) Temporary transfer or permitting the use or enjoyment of a copyright covered under section 13 of the Indian Copyright Act, 1957 relating to original literary, dramatic, musical, artistic works or cinematograph films

vii) Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having (i) the facility of airconditioning or central air-heating in any part of the establishment, at any time during the year, and (ii) a licence to serve alcoholic beverages

Therefore, with the exception of 38 services as specifically provided by the CBEC under negative list, all other services will come under the 12%3 service tax bracket.

Thank u...

Vipul Baviskar
Baroda.