Brief on Negative List of Services - TaxGuru.
Service Tax is a destination based consumption tax in the form of Value Added Tax. Service Tax is an indirect tax imposed on specified services (taxable services) provided by a service provider (Company, Individual, Firm etc.). Service Tax was first brought into force with effect from 1 July 1994. All service providers in India.
Negative List of Service Tax: Under Section 66D of the Finance Act 1994, a negative list of services have been outlined, which are deemed to be exempt from service tax. Any service provided that does not come under the purview of this list is liable to be levied with service tax.
Prior to introduction of Negative List, no specific category to tax ocean freight; therefore, such service was not subject to tax Post introduction of Negative List, Rule 10 of PPSR likely to apply Therefore, for export cargo, service tax not likely to be levied, as destination of goods is outside India.
Services that come under the negative list are exempt from service tax. The concept of a negative list was first introduced in the Finance Act 2012, which came into effect from 1 July 2012. The.
Budget 2012 had implemented the scheme of taxing services as per the negative list, as a result of which, every service has been put to tax unless it is covered by the negative list of services enlisted under section 66D of the Finance Act, 1994 or the same has been granted a specific exemption from such levy. As the scheme suggests, no service tax shall be levied on the services falling under.
A new concept of negative list for service tax was announced in the year 2012 budget, which overcomes the previous version. Earlier service tax was levied on certain specified services only. New system ensures that expect those services that have been listed in the negative list, all other services will be subject to service tax.
Notes for the list: Certain exemption has been made in accumulation to the Negative List. Finance act includes a section named 66D which invokes the negative list as per budget list of service tax 2012. The service tax levied, service charge and the service taxability has been clearly mentioned in section named 66B of the finance Act.