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All Services Except 17 Come Under 12 Per Cent Service Tax

New Delhi, March 16 : Finance Minister Pranab Mukherjee today said that the Government has proposed to tax all services except those in the negative list. The negative  list comprises 17 heads. The important inclusions

India TV News Desk [ Updated: March 17, 2012 13:26 IST ]
all services except 17 come under 12 per cent service tax
all services except 17 come under 12 per cent service tax

New Delhi, March 16 : Finance Minister Pranab Mukherjee today said that the Government has proposed to tax all services except those in the negative list. The negative  list comprises 17 heads.


The important inclusions in the negative list comprise all services provided by the Government or local authorities, except a few specified services where they compete with private sector.

The list also includes pre-school and school education, recognized education at higher levels and approved vocational education, renting of residential dwellings, entertainment and amusement services and a large part of public transportation including inland waterways, urban railways and metered cabs.

Mukherjee said that agriculture and animal husbandry enjoy a very important place in our lives.

Practically all services required for cultivation, breeding, production, processing or marketing up to the stage the produce is sold in the primary markets are covered by the list.

Mukherjee further stated that in addition to the negative list, there is a list of exemptions which include health care, services provided by charities, religious persons, sportspersons, performing artists in folk and classical arts, individual advocates providing services to non-business entities, independent journalists, and services by way of animal care or car parking.

The Finance Minister also announced exemption of the services of business facilitators and correspondents to banks and insurance companies.

Construction services relating to specified infrastructure, canals, irrigation works, post-harvest infrastructure, residential dwelling, and low-cost mass housing up to an area of 60 sq.mtr. under the Scheme of Affordable Housing in Partnership are also included in the exemptions.

 Mukherjee also proposed to raise the exemption for the monthly charges payable by a member to a housing society from Rs. 3,000 to Rs. 5,000.

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