SERVICES COVERED UNDER NEGATIVE LIST:
The negative list of services are specified in section 66D.In all ,there are 17 heads of services under negative list. Important items contained under negative list are-
- Services by Government or a Local Authority excluding the following services to the extent they are not covered elsewhere-
(i) services by the department of posts by way of speed post ,Express Parcel post , Life Insurance and agency services provided to a person other than the Government.
(ii) services in relation to an air craft or a vessel ,inside or outside the precincts of a port or an airport.
(iii) transport of goods and passengers or
(iv ) Support services other than services covered under clause (i) to (iii) above, provided to business entities.
- Services relating to agriculture or agricultural produce by way of agricultural operations ,supply of farm labour, processes carried out at an agricultural firm including tendering ,cutting ,harvesting, bulk packaging ,and such like operations which do not alter the essential characteristics of agri produce but make it only marketable for the primary market , renting /leasing of Agro Machinery or vacant land renting with or without a structure incidental to its use , loading ,unloading ,packing ,storage or warehousing of agri produce ,services by any agricultural produce marketing committee or board or services provided by a commission agent for sale or purchase of agri produce.
- Services provided by RBI ,
- Services provided by a Foreign Diplomatic missions located in India
5.Trading of goods( movable ) is not taxable service (goods include securities )
6.Processes that result in ‘manufacture’ or production of goods is not service ( since then excise law provisions become applicable.
7.Gambling, Betting ,Lottery ( as this is covered under ‘State List’ in our constitution )
8.Admission to entertainment events or access to amusement facilities.
9.Transmission and Distribution of electricity by authorized bodies.( however no service tax even on private basis as tax on consumption and sale of electricity is State subject )
10.Renting for Residential purposes.
11.Services by way of – Preschool Educational and education up to higher secondary school or equivalent OR Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force OR Education as part of an approved vocational education course.
12.Services by way of –
(i) Extending deposits ,Loans and Advances in so far as Consideration is represented by way of interest or discount
(ii) Inter se sale or purchase of Foreign Currency among the banks or authorized dealers of foreign exchange or among the banks and such dealers.
13.Services by way of Transportation of goods
- by Road except the services of GTA OR a courier agency.
- By an aircraft or a vessel from a place outside India up to the customs station of clearance in India or
- By Inland waterways.
- 14. Services of transportation of Passenger with or without accompanied belongings ,by
- stage carrier
- inland waterways
- Railways in a class other than first class or an air conditioned coach.
- Metro ,monorail or tramway
- Public transport ,other than cases predominantly for tourism purpose, in a vessel between places located in India ,and
- Metered cabs or auto rickshaws.
15.Selling of space or time slots for advertisement in print media ,Bill Boards ,Public Places ,Cell Phones, ATM, Internet ,Aerial advertising are in negative list but sale of space for advertisement on Radio or T.V or sale of time slots by a broadcasting organization is excluded from negative list.
16.Services by way of access to a road or a bridge on payment of Toll Charges.
17.Funeral ,burial ,crematorium or mortuary services including transportation of the deceased.