Introduction

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....ars, with collections touching Rs. 3,302 crore in 2001 -02, service tax took some giant leaps in the next 7 years, both on the back of wider coverage as well as increase in tax rate, reaching Rs. 60,941 crore in 2008-09. Next two years saw the growth somewhat moderating with collections reaching Rs. 70,896 crore in 2010-11. The buoyancy began once again on the back of some policy initiatives and ....

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....f lack of clarity and significant gaps in existing definitions, exposing the tax collection process to avoidable leakages and litigation. Budget 2012 has ushered a new system of taxation of services; popularly known as Negative List. The new changes are a paradigm shift from the existing system where only services of specified descriptions are subjected to tax. In the new system all services, exc....

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....e is being released purely as a measure of facilitation so that all stakeholders obtain some preliminary understanding of the new issues for smooth transition to the new regime. 1.3 What is the key to using this Guide? The guide consists of a number of Guidance Notes. Each of the notes deals with a specific topic relating to the negative list. The list of these educational notes is as follows- ....

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.... in clause (44) of section65B of the Act. ♦ Section 66B specifies the charge of service tax which is essentially that service tax shall be levied on all services provided or agreed to be provided in a taxable territory, other than services specified in the negative list. ♦ The negative list of services is contained in section 66D of the Act. ♦ Since provision of service in ....