Negative list of services under Service Tax

By | April 18, 2016

Negative list of services

Neagtive list of services are those services which are categorised as services but not taxable u/s 66D.

Negative List of services are defined in the Section – 66D of Finance Act, 1994

Read Also :Service Provided by Govt Taxable w.e.f 01.4.2016

66D. The negative list shall comprise of the following services, namely:—

(a) 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 Government;
(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
(iii) transport of goods or passengers; or
(iv) 10b [ any service ], other than services covered under clauses (i) to (iii)above, provided to business entities;
(b) services by the Reserve Bank of India;
(c) services by a foreign diplomatic mission located in India;
(d) services relating to agriculture or agricultural produce by way of—
(i) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or 10c[***] testing;
(ii) supply of farm labour;
(iii) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
(iv) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;
(v) loading, unloading, packing, storage or warehousing of agricultural produce;
(vi) agricultural extension services;
(vii) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce;
(e) trading of goods;
10d [ (f) services by way of carrying out any process amounting to manufacture or production of goods excluding alcoholic liquor for human consumption; ]
10e[(g) selling of space for advertisements in print media;]
(h) service by way of access to a road or a bridge on payment of toll charges;
(i) betting, gambling or lottery;
10f [Explanation—For the purposes of this clause, the expression “betting, gambling or lottery” shall not include the activity specified in Explanation 2 to clause (44) of section 65B;]
(j) 10g [***]
(k) transmission or distribution of electricity by an electricity transmission or distribution utility;
(l) services by way of—
(i) pre-school education and education up to higher secondary school or equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
(iii) education as a part of an approved vocational education course;
(m) services by way of renting of residential dwelling for use as residence;
(n) services by way of—
(i) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;
(ii) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange or amongst banks and such dealers;
(o) service of transportation of passengers, with or without accompanied belongings, by—
(i) a stage carriage;
(ii) railways in a class other than—
(A) first class; or
(B) an airconditioned coach;
(iii) metro, monorail or tramway;
(iv) inland waterways;
(v) public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and
10h[(vi) metered cabs or auto rickshaws;]
(p) services by way of transportation of goods—
(i) by road except the services of—
(A) a goods transportation agency; or
(B) a courier agency;
(ii) by an aircraft or a vessel from a place outside India up to the customs station of clearance in India; or
(iii) by inland waterways;
(q) funeral, burial, crematorium or mortuary services including transportation of the deceased.

Notes :-

10b. Substituted for “support services” by the Finance Act, 2015 w.e.f. 1-4-2016.

10c.. Word “seed” omitted by the Finance Act, 2013, w.e.f. 10-5-2013.

10d. Substituted by the Finance Act, 2015, w.e.f. 1-6-2015. Prior to its substitution, clause (f) read as under :

“(f) any process amounting to manufacture or production of goods;”

10e. Substituted by the Finance (No. 2) Act, 2014, w.e.f. 1-10-2014. Prior to its substitution, clause (g) read as under :

“(g) selling of space or time slots for advertisements other than advertisements broadcast by radio or television;”

10f. Inserted by the Finance Act, 2015, w.e.f. 1-6-2015.

10g. Omitted by the Finance Act, 2015, w.e.f. 1-6-2015. Prior to its omission, clause (j) read as under :

“(j) admission to entertainment events or access to amusement facilities;”

10h. Substituted by the Finance (No. 2) Act, 2014, w.e.f. 1-10-2014. Prior to its substitution, sub-clause (vi) read as under :

“(vi) metered cabs, radio taxis or auto rickshaws;”


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