Negative list Service

[Shyam .]

Hi All,

If am taking a service which is covered under negative list and i added some amount and then same service provide to another person. Shall i need to charge service tax on it ?

Really appreciate if you can refer any legal language or case law.

Thanks

[PAWAN KUMAR]

As per my view, service tax would not be charged becuase the service being performed is still under negative list.

[Rajesh Nathoo]

Kindly explain the service in detail .  Go though Sec. 66F , Refernce to a service (i.e. main service ) shall not include refrence to a service which is used for providing main service . If you are acting as an agent or intermediary between the main service provider and receipient . , u are liable to pay ST on this extra amount only , not on whole amount .

[SNEHAL SHAH]

Dear ,

If your service include below list of services then your service cover under negative list of service and no service tax liability .

Negative List of Service Tax 2013-14

Negative list of Service Tax is comprised of following 17 heads. I have given all the 17 heads of negative list of Service Tax below.

1. Services by Government or a local authority excluding the following services to the extent they are not covered elsewhere:
   1. 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;
   2. services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
   3. transport of goods or passengers; or
   4. Support services, other than services covered under clauses (i) to (iii) above, provided to business entities.
2. Services by the Reserve bank of India;
3. Services by a foreign diplomatic mission located in India.
4. Services relating to agriculture or agricultural produce by way of –
   1. agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or seed testing;
   2. supply of farm labour;
   3. 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 essential characteristics of agricultural produce but make it only marketable for the primary market;
   4. renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;
   5. loading, unloading, packing, storage or warehousing of agricultural produce;
   6. agricultural extension services;
   7. Services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce.
5. Trading of goods.
6. Any process amounting to manufacture or production of goods.
7. Selling of space or time slots for advertisements other than advertisements broadcast by radio or television.
8. Service by way of access to a road or a bridge on payment of toll charges.
9. Betting, gambling or lottery.
10. Admission to entertainment events or access to amusement facilities.
11. Transmission or distribution of electricity by an electricity transmission or distribution utility.
12. Services by way of –
    1. Pre-school education and education up to higher secondary school or equivalent;
    2. Education as a part of a curriculum for obtaining a qualification recognized by law;
    3. Education as a part of an approved vocational education course.
13. Services by way of renting of residential dwelling for use as residence;
14. Services by way of –
    1. extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;
    2. inter-se sale or purchase of foreign currency amongst banks or authorized dealers of foreign exchange or amongst banks and such dealers;
15. Service of transportation of passengers, with or without accompanied belongings, by –
    1. a stage carriage;
    2. railways in a class other than – (A) first class; or
       (B) an air conditioned coach;
    3. metro, monorail or tramway;
    4. inland waterways;
    5. public transport, other than predominantly for tourism purpose, in a vessel between
    6. places located in India; and
    7. metered cabs, radio taxis or auto rickshaws;
16. Services by way of transportation of goods –
    1. by road except the services of –
       1. a goods transportation agency; or
       2. a courier agency;
    2. by an aircraft or a vessel from a place outside India up to the customs station of clearance in India; or
    3. by inland waterways;

17. Funeral, burial, crematorium or mortuary services including transportation of the deceased.

2 extra services included in Negative list

Two more services have been included in the negative list for service tax. These are:

Vocational courses offered by institutes affiliated to the State Council of Vocational Training; and, testing activities in relation to agriculture and agricultural produce.

Thanks and Regards,

SNEHAL SHAH

 

AI Summary

Negative list services: no service tax on covered activities unless intermediary functions make the markup a taxable service. Whether service tax is payable when reselling a service covered by the negative list depends on characterization: if the activity remains within a negative-list head it is not taxable, but where the reseller functions as an agent or intermediary providing a distinct service, the markup or consideration attributable to that intermediary service may be subject to service tax.