Definition of Government

[Admin TMI]

Question - What are proposed definition of Government in Finance Bill 2015 ?

[Admin TMI]

Services, excluding few specified services, provided by the government have been included in the Negative List. Further, specified services received by the government are also exempt. Hitherto, the term “government” has not been defined in the Act or the notification. This has given rise to interpretational issues. To address such issues, a definition of the term “government” is being incorporated in the Act.

AI Summary

Definition of government clarifies treatment of government-provided and government-received services under tax law.
A statutory definition of "government" will be incorporated into the Act to address interpretational uncertainty: government-provided services (other than specified exceptions) are included in the Negative List and specified services received by government are exempt, thereby aligning the scope of exclusions and exemptions and reducing disputes over service tax applicability to government entities.