Negative list of st

The Service Tax provisions in the budget detail out 17 areas on which
you will not be charged a tax, and for absolutely everything else that
involves a service, you will need to pay 12 % (plus cess). The
seventeen areas are:

1. Services by the Government or local authorities: These will include
such services like getting a passport, a driving license, paying
municipal taxes, car registration fees, police fines and so on. What
you pay for such services will not include any service tax.
But of course, there are exceptions. Service tax will still be applicable on:
- Speed or Express Post, and life insurance bought from a post office
- airport services
- government services provided to businesses. (Companies will pay it
on the annual filing charges payable to the Registrar of Companies,
for instance).

2. Services by the Reserve Bank of India. They won't tax the ones that
print the money!

3. Foreign consulates and embassies in India. Hopefully this will mean
to visa fees as well.

4. Agricultural services. This includes harvesting, planting, or
warehousing services, renting of either vacant agricultural land or
machinery,

5. Trading, and (see point 6)

6. Manufacturing of goods. For this and trading, service tax will not
apply but there is already the excise duty, customs duty and VAT
structure that will ensure they are still taxed.

7. Advertisements on hoardings or newspapers: The clause says that
service tax will still apply on advertisements in TV or Radio, but for
every other form of advertising.

8. Toll charges: No extra charges; imagine trying to pay Rs. 23.60 at
a toll booth with twenty impatient cars behind you.

9. Gambling: Yes, you don't have service tax if you visit a casino,
buy a lottery ticket or bet on a horse race. But if you win, the
income tax is quite hefty, so all this clause does is that they don't
tax you when you lose.

10. Entertainment events: What you pay to enter a concert or an
amusement park will not be subject to service tax.

11. Electricity: If you're paying a local utility, no service tax will
be applicable. But if you pay for power coming off a generator, you'll
shell out 12% extra.

12. Education: No service tax for pre-school to high-school education.
And not for any education to purse a qualification recognized by law.
(I imagine this applies to courses such as a CA, MBBS, or any
recognized degree) That also means you'll pay it for a course that
gives you an unrecognized diploma, and for private tuitions.

13. Residential rent: For those of us that stay in rented premises, we
don't have to pay service tax. Offices, factories and other users
must, but that was true last year as well.
14. Certain financial transactions like giving money as a loan, buying
a deposit, where interest is involved will not be chargeable to
service tax. However, the interest actually received (or paid) will be
subject to service tax. Also, given the way this clause is worded, if
you give anyone money without any interest, service tax will apply.
(At the very least, give or take some interest)

15. Public Transport: Exemption applies to all kinds of
transportation, on water or land, included metered cabs. You will
still pay service tax on First Class or any air-conditioned coach
seats in a train. And you will pay it on packaged tours.

16. Goods transport: Except if you use a road transport agency or a
courier service.

17. For the absolute end: This includes funeral, burial, crematorium,
hearse or mortuary services. Taxes may kill you, but they won't touch
your final rites.