Service Tax Negative List and up to date Mega Exemption Notifications Up-to-date as on 05/05/2017
Levy of Service Tax has been introduced by insertion of article 268A in the Constitution of India. The provisions relating to Service Tax were brought into force with effect from 1st July 1994. It extends to the whole of India except the state of Jammu & Kashmir. Service Tax is administered by the Central Excise & Service Tax Commissionerates and the Service Tax Commissionerates working under the Central Board of Excise & Customs (CBEC), Department of Revenue, Ministry of Finance, Government of India.
With effect from 1.07.2012, Service Tax regime based on negative list has been introduced.
Service Tax Negative List and up to date Mega Exemption Notification
Charge of Service Tax:
Currently, taxable services are:
1. Services covered under section 65B(44)
2. Services that do not form part of Negative List
3. Declared Services
4. Services that are not exempted under Mega Exemption Notification(s)
5. Services that are not exempted under a specific Notification
1. Services covered under section 65B(44):
Services that comes under the broad definition of services as provided in section 65B(44) are liable to service tax. As per Section 65B(44) “service” means any activity carried out by a person for another for consideration, and includes a declared service,….” It also includes exclusions.
2. Services that do not form part of Negative List:
With effect from 1st July, 2012, service tax is payable on all services as persection 65B(44) except those seventeen services (clause a to q) as listed insection 66D. This list is called as Negative List of Services.
Download Negative List Click Here >>
3. Declared Services:
Nine Services specifically covered under section 66E as “Declared Services”
5. Services that are not exempted under Mega Exemption Notification(s):
The Government, in the public interest by issue of Notification 25/2012 dated 20th June, 2012 had initially exempted 39 services from the levy of service tax. This notification is popularly referred to as Mega Exemption Notification which came into force with effect from 1st July, 2012. In other words services not covered in mega exemptions or negative list are taxable services unless specifically exempted.
Since then, there have been thirteen amendments in the said mega exemption notification. These amendments (latest to past) as under:
| Notification No. 17/2017 dated 05/05/2017 | Exemption to Pradhan Mantri Vaya Vandana Yojna (PMVVY) Pension Plan |
| Notification No. 10/2017 dated 08/03/2017 | Exemption to educational institutes from rent of immovable property not to apply except to pre-school or higher secondary |
| Notification No. 7/2017 dated 02/02/2017 | Various amendments |
| Notification No. 5/2017 dated 30/01/2017 | Withdrawal of the exemption for online information and database access or retrieval services provided by a person located in non-taxable territory to an entity in India registered under section 12AA of the Income Tax Act, 1961 |
| Notification No. 1/2017 dated 12/01/2017 | Exemption to online information database services & transportation of goods by service provider located in non taxable territory withdrawn |
| Notification No. 52/2016 dated 08/12/2016 | Seeks to exempt services by an acquiring bank, to any person in relation to settlement of an amount upto two thousand rupees in a single transaction transacted through credit card, debit card, charge card or other payment card service |
| Notification No. 47/2016 dated 09/11/2016 | Withdrawal of exemption from service tax for services provided by a person in non-taxable territory to Government, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory. |
| Notification No. 40/2016 dated 06/09/2016 | Exemption to renting of religious places by owned/managed by charitable-religious trust registered u/s 12AAAlso read Circular clarifying the meaning of ‘Precincts’ as per Serial No. 5(a) of Notification 25/2012 |
| Notification No. 39/2016 dated 02/09/2016 | Exemption to services provided by Govt./Local authority for operating telecom services/use radio frequency spectrum |
| Notification No. 32/2016 dated 06/06/2016 | Service Tax on Senior Advocates for Services to Non business entity and business entity up to turnover of Rs. 10 lakhs |
| Notification No. 26/2016 dated 20/05/2016 | Amendment to entry 48 related to services provided by Government and Local Authority |
| Notification No. 25/2016 dated 17-05-2016 | Exemption to Haj and Mansarovar Pilgrimage for the period 01/07/2012 to 09/08/2014-Clarification |
| Notification No. 22/2016 dated 13-04-2016 | Services provided by Government/local authority |
| Notification No. 09/2016 dated 01-03-2016 | Amendment to Mega Exemptions as per Budget 2016-17 |
| Notification No. 07/2016 dated 18-02-2016 | Exemption to services provided by Government or a local authority to a business entity with a turnover up to rupees ten lakh in a year |
| Notification No. 20/2015 dated 21-10-2015 | Services by Business Facilitator/corrospondent for Basic Savings Bank Deposit Account under PMJDY |
| Notification No. 12/2015 dated 30-04-2015 | PM Suraksha Bima/Jeewan Jyoti Beema/Jan Dhan Yonja |
| Notification No. 06/2015 dated 01-03-2015 | Withdrawal and grant of new Exemptions |
| Notification No. 17/2014 dated 20-08-2014 | Exemption to Hajand Mansarovar Religious Pilgrimage Yatra |
| Notification No. 06/2014 dated 11-07-2014 | Addition, substitution and omission of several entries |
| Notification No. 04/2014 dated 17-02-2014 | New entry 2A related to cord blood banks and New entry 40 related to Services by way of loading, unloading, packing, storage or warehousing of rice |
| Notification No. 14/2013 dated 22-10-2013 | New entry 19A related to Services provided in relation to serving of food or beverages by a canteen maintained in a factory covered under the Factories Act,1948 (63 of 1948), having the facility of air-conditioning or central air-heating at any time during the year |
| Notification No. 13/2013 dated 10-09-2013 |
New Entry 9A for services provided by: (i) The National Skill Development Corporation set up by the Government of India; (ii) A Sector Skill Council approved by the National Skill Development Corporation; (iii) An assessment agency approved by the Sector Skill Council or the National Skill Development Corporation (iv) A training partner approved by the National Skill Development Corporation or the Sector Skill Council in relation to (a) the National Skill Development Programme implemented by the National Skill Development Corporation; or (b) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (c) any other Scheme implemented by the NationalSkill Development Corporation. |
| Notification No. 03/2013 dated 01-03-2013 | Various amendments |
| Notification No. 49/2012 dated 24-12-2012 |
New Entry 26A added to includeServices of life insurance business provided under –(a)Janashree Bima Yojana (JBY); or (b) Aam Aadmi Bima Yojana(AABY) |
| Notification No. 44/2012 dated 07-08-2012 | In Entry 33 relating to Services by way of slaughtering of bovine animals, the word “bovine” omitted |
5. Services that are not exempted under a specific Notification:
Apart from above, services that are exempted under a specific notification or services rendered in non taxable territory are also out of the net of taxable services.
Download Service Tax Act to read various sections Click Here >>
- Cash deposit in demonetisation held exempt assessee being resident of Arunachal Pradesh
- ICAI bans seven Chartered Accountants being guilty of professional misconduct
- ITAT deleted addition made on presumption – there cannot be loss in restaurant business
- Rent of plot taxed as income from other sources in absence of proof of structure on it
- Application invited for special Public Prosecutors in Income Tax Department NER Region
