Negative list of service tax

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Trading of goods is mentioned in the negative list. does it mean it is a exempt service or does it mean that it is out of the scope of defination of service .

 

 

 

Will rule 6 of Cenvat Credi Apply on a car dealer who is indulged in Car selling and Service of cars as Service of car is taxable and sale is trading of goods which is mentioned in the negative list.

 

 

 

 

Replies (4)

Can you provide nagative list

Yes, as per the explanation of value provided after sub rule 3D of Rule 6 of CCR, 2004. it clarifies that trading will be considered as exempt service. Hope this will solve your query.

but being in negative list means out os scope of service 

 

Yes you are correct, but as per the explanation of "value" it has to be considered for the purpose of reversal of CENVAT Credit under Rule 6 (3A) of CCR, 2004. It is quite specific in the said rule so whenever any thing is specific we can not go for general interpretation of law.


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