Service Tax

Service Tax Negative List as on 01.06.2015

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Finance Act, 2012 intro­duced the Con­cept of Neg­a­tive list of Ser­vices accord­ing to which all ser­vices except the those spec­i­fied in Neg­a­tive list are liable for Ser­vice Tax. First Noti­fi­ca­tion  in the regards was issued in 20.06.2012. There­after no of noti­fi­ca­tion has been issued to amend the Neg­a­tive List. Updat­ed Neg­a­tive List is as below: 

1 Ser­vices pro­vid­ed to the Unit­ed Nations or a spec­i­fied inter­na­tion­al organization;
2 (i) Health care ser­vices by a clin­i­cal estab­lish­ment, an autho­rised med­ical prac­ti­tion­er or para-medics;
(ii) Ser­vices pro­vid­ed by way of trans­porta­tion of a patient in an ambu­lance, oth­er than those spec­i­fied in (i) above;
2A. Ser­vices pro­vid­ed by cord blood banks by way of preser­va­tion of stem cells or any oth­er ser­vice in rela­tion to such preservation;
2B. Ser­vices pro­vid­ed by oper­a­tors of the Com­mon Bio-med­ical Waste Treat­ment Facil­i­ty to a clin­i­cal estab­lish­ment by way of treat­ment or dis­pos­al of bio-med­ical waste or the process­es inci­den­tal thereto;
3 Ser­vices by a vet­eri­nary clin­ic in rela­tion to health care of ani­mals or birds;
4 Ser­vices by an enti­ty reg­is­tered under sec­tion 12AA of the Income tax Act, 1961 (43 of 1961) by way of char­i­ta­ble activities;
5 Ser­vices by a per­son by way of-
(a) rent­ing of precincts of a reli­gious place meant for gen­er­al pub­lic; or
(b) con­duct of any reli­gious ceremony;
5A. Ser­vices by a spec­i­fied organ­i­sa­tion in respect of a reli­gious pil­grim­age facil­i­tat­ed by the Min­istry of Exter­nal Affairs of the Gov­ern­ment of India, under bilat­er­al arrangement;
6 Ser­vices pro­vid­ed by-
(a) an arbi­tral tri­bunal to -(i) any per­son oth­er than a busi­ness enti­ty; or(ii) a busi­ness enti­ty with a turnover up to rupees ten lakh in the pre­ced­ing finan­cial year;
(b) an indi­vid­ual as an advo­cate or a part­ner­ship firm of advo­cates by way of legal ser­vices to,-(i) an advo­cate or part­ner­ship firm of advo­cates pro­vid­ing legal ser­vices ;(ii) any per­son oth­er than a busi­ness enti­ty; or
(iii) a busi­ness enti­ty with a turnover up to rupees ten lakh in the pre­ced­ing finan­cial year; or
© a per­son rep­re­sent­ed on an arbi­tral tri­bunal to an arbi­tral tribunal;
7 Omit­ted
8 Ser­vices by way of train­ing or coach­ing in recre­ation­al activ­i­ties relat­ing to arts, cul­ture or sports;
9 Ser­vices provided,-
(a) by an edu­ca­tion­al insti­tu­tion to its stu­dents, fac­ul­ty and staff;
(b) to an edu­ca­tion­al insti­tu­tion, by way of,-(i) trans­porta­tion of stu­dents, fac­ul­ty and staff;(ii) cater­ing, includ­ing any mid-day meals scheme spon­sored by the Government;
(iii) secu­ri­ty or clean­ing or house-keep­ing ser­vices per­formed in such edu­ca­tion­al institution;
(iv) ser­vices relat­ing to admis­sion to, or con­duct of exam­i­na­tion by, such institution;
9A Any 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 skillde­vel­op­ment course under the Nation­al Skill Cer­ti­fi­ca­tion and Mon­e­tary Reward Scheme; or © any oth­er Scheme imple­ment­ed by the Nation­al Skill Devel­op­ment Corporation.
10 Ser­vices pro­vid­ed to a recog­nised sports body by-
(a) an indi­vid­ual as a play­er, ref­er­ee, umpire, coach or team man­ag­er for par­tic­i­pa­tion in a sport­ing event orga­nized by a rec­og­nized sports body;
(b) anoth­er recog­nised sports body;
11 Ser­vices by way of spon­sor­ship of sport­ing events organised,-
(a) by a nation­al sports fed­er­a­tion, or its affil­i­at­ed fed­er­a­tions, where the par­tic­i­pat­ing teams or indi­vid­u­als rep­re­sent any dis­trict, State, zone or Country;
(b) by Asso­ci­a­tion of Indi­an Uni­ver­si­ties, Inter-Uni­ver­si­ty Sports Board, School Games Fed­er­a­tion of India, All India Sports Coun­cil for the Deaf, Par­a­lympic Com­mit­tee of India or Spe­cial Olympics Bharat;
© by Cen­tral Civ­il Ser­vices Cul­tur­al and Sports Board;
(d) as part of nation­al games, by Indi­an Olympic Asso­ci­a­tion; or
(e) under Pan­chay­at Yuva Kree­da Aur Khel Abhiyaan (PYKKA) Scheme;
12 Ser­vices pro­vid­ed to the Gov­ern­ment, a local author­i­ty or a gov­ern­men­tal author­i­ty by way of con­struc­tion, erec­tion, com­mis­sion­ing, instal­la­tion, com­ple­tion, fit­ting out, repair, main­te­nance, ren­o­va­tion, or alter­ation of –
(a) Omit­ted
(b) a his­tor­i­cal mon­u­ment, archae­o­log­i­cal site or remains of nation­al impor­tance, archae­o­log­i­cal exca­va­tion, or antiq­ui­ty spec­i­fied under the Ancient Mon­u­ments and Archae­o­log­i­cal Sites and Remains Act, 1958 (24 of 1958);
© Omit­ted
(d) canal, dam or oth­er irri­ga­tion works;
(e) pipeline, con­duit or plant for (i) water sup­ply (ii) water treat­ment, or (iii) sew­er­age treat­ment or disposal;
(f) Omit­ted
13 Ser­vices pro­vid­ed by way of con­struc­tion, erec­tion, com­mis­sion­ing, instal­la­tion, com­ple­tion, fit­ting out, repair, main­te­nance, ren­o­va­tion, or alter­ation of,-
(a) a road, bridge, tun­nel, or ter­mi­nal for road trans­porta­tion for use by gen­er­al public;
(b) a civ­il struc­ture or any oth­er orig­i­nal works per­tain­ing to a scheme under Jawa­har­lal Nehru Nation­al Urban Renew­al Mis­sion or Rajiv Awaas Yojana;
© a build­ing owned by an enti­ty reg­is­tered under sec­tion 12 AA of the Income tax Act, 1961(43 of 1961) and meant pre­dom­i­nant­ly for reli­gious use by gen­er­al public;
(d) a pol­lu­tion con­trol or efflu­ent treat­ment plant, except locat­ed as a part of a fac­to­ry; or a struc­ture meant for funer­al, bur­ial or cre­ma­tion of deceased;
14 Ser­vices by way of con­struc­tion, erec­tion, com­mis­sion­ing, or instal­la­tion of orig­i­nal works per­tain­ing to,-
(a) rail­ways, includ­ing mono­rail or metro;
(b) a sin­gle res­i­den­tial unit oth­er­wise than as a part of a res­i­den­tial complex;
© low- cost hous­es up to a car­pet area of 60 square metres per house in a hous­ing project approved by com­pe­tent author­i­ty empow­ered under the ‘Scheme of Afford­able Hous­ing in Part­ner­ship’ framed by the Min­istry of Hous­ing and Urban Pover­ty Alle­vi­a­tion, Gov­ern­ment of India;
(d) post- har­vest stor­age infra­struc­ture for agri­cul­tur­al pro­duce includ­ing a cold stor­ages for such pur­pos­es; or
(e) mech­a­nised food grain han­dling sys­tem, machin­ery or equip­ment for units pro­cess­ing agri­cul­tur­al pro­duce as food stuff exclud­ing alco­holic beverages;
15. Ser­vices pro­vid­ed by way of tem­po­rary trans­fer or per­mit­ting the use or enjoy­ment of a copyright,-
(a) cov­ered under clause (a) of sub-sec­tion (1) of sec­tion 13 of the Copy­right Act, 1957 (14 of 1957), relat­ing to orig­i­nal lit­er­ary, dra­mat­ic, musi­cal or artis­tic works; or
(b) of cin­e­mato­graph films for exhi­bi­tion in a cin­e­ma hall or cin­e­ma theatre;
16 Ser­vices by an artist by way of a per­for­mance in folk or clas­si­cal art forms of (i) music, or (ii) dance, or (iii) the­atre, if the con­sid­er­a­tion charged for such per­for­mance is not more than one lakh rupees:Provided that the exemp­tion shall not apply to ser­vice pro­vid­ed by such artist as a brand ambassador.
17 Ser­vices by way of col­lect­ing or pro­vid­ing news by an inde­pen­dent jour­nal­ist, Press Trust of India or Unit­ed News of India;
18 Ser­vices by a hotel, inn, guest house, club or camp­site, by what­ev­er name called, for res­i­den­tial or lodg­ing pur­pos­es, hav­ing declared tar­iff of a unit of accom­mo­da­tion below one thou­sand rupees per day or equivalent;
19 Ser­vices pro­vid­ed in rela­tion to serv­ing of food or bev­er­ages by a restau­rant, eat­ing joint or a mess, oth­er than those hav­ing the facil­i­ty of air-con­di­tion­ing or cen­tral air-heat­ing in any part of the estab­lish­ment, at any time dur­ing the year;
19A. 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.
20 Ser­vices by way of trans­porta­tion by rail or a ves­sel from one place in India to anoth­er of the fol­low­ing goods –
(a) Omit­ted
(b) relief mate­ri­als meant for vic­tims of nat­ur­al or man-made dis­as­ters, calami­ties, acci­dents or mishap;
© defence or mil­i­tary equipments;
(d) Omit­ted
(e) Omit­ted
(f) news­pa­per or mag­a­zines reg­is­tered with the Reg­is­trar of Newspapers;
(g) rail­way equip­ments or materials;
(h) agri­cul­tur­al produce;
(i) milk, salt and food grain includ­ing flours, puls­es and rice;
(j) chem­i­cal fer­til­iz­er, organ­ic manure and oil cakes;
(k) cot­ton, ginned or baled.
21. Ser­vices pro­vid­ed by a goods trans­port agency, by way of trans­port in a goods car­riage of,-
(a) agri­cul­tur­al produce;
(b) goods, where gross amount charged for the trans­porta­tion of goods on a con­sign­ment trans­port­ed in a sin­gle car­riage does not exceed one thou­sand five hun­dred rupees;
© goods, where gross amount charged for trans­porta­tion of all such goods for a sin­gle con­signee does not exceed rupees sev­en hun­dred fifty;
(d) milk, salt and food grain includ­ing flours, puls­es and;
(e) chem­i­cal fer­til­iz­er, organ­ic manure and oil cakes;
(f) news­pa­per or mag­a­zines reg­is­tered with the Reg­is­trar of Newspapers;
(g) relief mate­ri­als meant for vic­tims of nat­ur­al or man-made dis­as­ters, calami­ties, acci­dents or mishap; or
(h) defence or mil­i­tary equipments;
(i) cot­ton, ginned or baled.
22 Ser­vices by way of giv­ing on hire –
(a) to a state trans­port under­tak­ing, a motor vehi­cle meant to car­ry more than twelve pas­sen­gers; or
(b) to a goods trans­port agency, a means of trans­porta­tion of goods;
23 Trans­port of pas­sen­gers, with or with­out accom­pa­nied belong­ings, by –
(a) air, embark­ing from or ter­mi­nat­ing in an air­port locat­ed in the state of Arunachal Pradesh, Assam, Manipur, Megha­laya, Mizo­ram, Naga­land, Sikkim, or Tripu­ra or at Bag­do­gra locat­ed in West Bengal;
(b) non-air­con­di­tioned con­tract car­riage oth­er than radio taxi, for trans­porta­tion of pas­sen­gers, exclud­ing tourism, con­duct­ed tour, char­ter or hire; or;
© rope­way, cable car or aer­i­al tramway;
24 Omit­ted
25 Ser­vices pro­vid­ed to Gov­ern­ment, a local author­i­ty or a gov­ern­men­tal author­i­ty by way of –
(a) water sup­ply, pub­lic health, san­i­ta­tion con­ser­van­cy, sol­id waste man­age­ment or slum improve­ment and up-gra­da­tion; or;
(b) repair or main­te­nance of a vessel
26 Ser­vices of gen­er­al insur­ance busi­ness pro­vid­ed under fol­low­ing schemes –
(a) Hut Insur­ance Scheme;
(b) Cat­tle Insur­ance under Swar­na­jayn­ti Gram Swaroz­gar Yoj­na (ear­li­er known as Inte­grat­ed Rur­al Devel­op­ment Programme);
© Scheme for Insur­ance of Tribals;
(d) Jana­ta Per­son­al Acci­dent Pol­i­cy and Gramin Acci­dent Policy;
(e) Group Per­son­al Acci­dent Pol­i­cy for Self-Employed Women;
(f) Agri­cul­tur­al Pumpset and Failed Well Insurance;
(g) pre­mia col­lect­ed on export cred­it insurance;
(h) Weath­er Based Crop Insur­ance Scheme or the Mod­i­fied Nation­al Agri­cul­tur­al Insur­ance Scheme, approved by the Gov­ern­ment of India and imple­ment­ed by the Min­istry of Agriculture;
(i) Jan Aro­gya Bima Policy;
(j) Nation­al Agri­cul­tur­al Insur­ance Scheme (Rashtriya Krishi Bima Yojana);
(k) Pilot Scheme on Seed Crop Insurance;
(l) Cen­tral Sec­tor Scheme on Cat­tle Insurance;
(m) Uni­ver­sal Health Insur­ance Scheme;
(n) Rashtriya Swasthya Bima Yojana; or
(o) Coconut Palm Insur­ance Scheme;
26A. Ser­vices of life insur­ance busi­ness pro­vid­ed under fol­low­ing schemes –
(a) Janashree Bima Yojana (JBY); or
(b) Aam Aad­mi Bima Yojana (AABY);
© life micro-insur­ance prod­uct as approved by the Insur­ance Reg­u­la­to­ry and Devel­op­ment Author­i­ty, hav­ing max­i­mum amount of cov­er of fifty thou­sand rupees.
(d) Var­ishtha Pen­sion Bima Yojana;
27 Ser­vices pro­vid­ed by an incu­ba­tee up to a total turnover of fifty lakh rupees in a finan­cial year sub­ject to the fol­low­ing con­di­tions, namely:-
(a) the total turnover had not exceed­ed fifty lakh rupees dur­ing the pre­ced­ing finan­cial year; and
(b) a peri­od of three years has not been elapsed from the date of enter­ing into an agree­ment as an incubatee;
28 Ser­vice by an unin­cor­po­rat­ed body or a non- prof­it enti­ty reg­is­tered under any law for the time being in force, to its own mem­bers by way of reim­burse­ment of charges or share of contribution –
(a) as a trade union;
(b) for the pro­vi­sion of car­ry­ing out any activ­i­ty which is exempt from the levy of ser­vice tax; or
© up to an amount of five thou­sand rupees per month per mem­ber for sourc­ing of goods or ser­vices from a third per­son for the com­mon use of its mem­bers in a hous­ing soci­ety or a res­i­den­tial complex;
29 Ser­vices by the fol­low­ing per­sons in respec­tive capacities –
(a) sub-bro­ker or an autho­rised per­son to a stock broker;
(b) autho­rised per­son to a mem­ber of a com­mod­i­ty exchange;
© Omit­ted
(d) Omit­ted
(e) Omit­ted
(f) sell­ing agent or a dis­trib­uter of SIM cards or recharge coupon vouchers;
(g) busi­ness facil­i­ta­tor or a busi­ness cor­re­spon­dent to a bank­ing com­pa­ny or an insur­ance com­pa­ny, in a rur­al area; or
(h) sub-con­trac­tor pro­vid­ing ser­vices by way of works con­tract to anoth­er con­trac­tor pro­vid­ing works con­tract ser­vices which are exempt;
30 Car­ry­ing out an inter­me­di­ate pro­duc­tion process as job work in rela­tion to –
(a) agri­cul­ture, print­ing or tex­tile processing;
(b) cut and pol­ished dia­monds and gem­stones; or plain and stud­ded jew­ellery of gold and oth­er pre­cious met­als, falling under Chap­ter 71 of the Cen­tral Excise Tar­iff Act ‚1985 (5 of 1986);
© any goods exclud­ing alco­holic liquors for human con­sump­tion, on which appro­pri­ate duty is payable by the prin­ci­pal man­u­fac­tur­er; or
(d) process­es of elec­tro­plat­ing, zinc plat­ing, anodiz­ing, heat treat­ment, pow­der coat­ing, paint­ing includ­ing spray paint­ing or auto black, dur­ing the course of man­u­fac­ture of parts of cycles or sewing machines upto an aggre­gate val­ue of tax­able ser­vice of the spec­i­fied process­es of one hun­dred and fifty lakh rupees in a finan­cial year sub­ject to the con­di­tion that such aggre­gate val­ue had not exceed­ed one hun­dred and fifty lakh rupees dur­ing the pre­ced­ing finan­cial year;
31 Ser­vices by an organ­is­er to any per­son in respect of a busi­ness exhi­bi­tion held out­side India;
32 Omit­ted
33 Ser­vices by way of slaugh­ter­ing of animals;
34 Ser­vices received from a provider of ser­vice locat­ed in a non- tax­able ter­ri­to­ry by –
(a) 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;
(b) an enti­ty reg­is­tered under sec­tion 12AA of the Income tax Act, 1961 (43 of 1961) for the pur­pos­es of pro­vid­ing char­i­ta­ble activ­i­ties; or
© a per­son locat­ed in a non-tax­able territory;
35 Ser­vices of pub­lic libraries by way of lend­ing of books, pub­li­ca­tions or any oth­er knowl­edge- enhanc­ing con­tent or material;
36 Ser­vices by Employ­ees’ State Insur­ance Cor­po­ra­tion to per­sons gov­erned under the Employ­ees’ Insur­ance Act, 1948 (34 of 1948);
37 Ser­vices by way of trans­fer of a going con­cern, as a whole or an inde­pen­dent part thereof;
38 Ser­vices by way of pub­lic con­ve­niences such as pro­vi­sion of facil­i­ties of bath­room, wash­rooms, lava­to­ries, uri­nal or toilets;
39 Ser­vices by a gov­ern­men­tal author­i­ty by way of any activ­i­ty in rela­tion to any func­tion entrust­ed to a munic­i­pal­i­ty under arti­cle 243 W of the Constitution.
40 Ser­vices by way of load­ing, unload­ing, pack­ing, stor­age or ware­hous­ing of rice, cot­ton, ginned or baled;
41 Ser­vices received by the Reserve Bank of India, from out­side India in rela­tion to man­age­ment of for­eign exchange reserves;
42 Ser­vices pro­vid­ed by a tour oper­a­tor to a for­eign tourist in rela­tion to a tour con­duct­ed whol­ly out­side India.
Pro­vi­sions Applic­a­ble from Such date as the Cen­tral Gov­ern­ment may, by noti­fi­ca­tion in the Offi­cial Gazette, appoint
43 Ser­vices by oper­a­tor of Com­mon Efflu­ent Treat­ment Plant by way of treat­ment of effluent;
44 Ser­vices by way of pre-con­di­tion­ing, pre-cool­ing, ripen­ing, wax­ing, retail pack­ing, labelling of fruits and veg­eta­bles which do not change or alter the essen­tial char­ac­ter­is­tics of the said fruits or vegetables;
45 Ser­vices by way of admis­sion to a muse­um, nation­al park, wildlife sanc­tu­ary, tiger reserve or zoo;
46 Ser­vice pro­vid­ed by way of exhi­bi­tion of movie by an exhibitor to the dis­trib­u­tor or an asso­ci­a­tion of per­sons con­sist­ing of the exhibitor as one of its members;
47 Ser­vices by way of right to admis­sion to,-
(i) exhi­bi­tion of cin­e­mato­graph­ic film, cir­cus, dance, or the­atri­cal per­for­mance includ­ing dra­ma or ballet;
(ii) recog­nised sport­ing event;
(iii) award func­tion, con­cert, pageant, musi­cal per­for­mance or any sport­ing event oth­er than a recog­nised sport­ing event, where the con­sid­er­a­tion for admis­sion is not more than Rs 500 per person..

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