1- Government services provided by specified person: - in this category the following are included where no service tax is charged or service tax is exempted.
- Services provided by the UN.
- International bodies.
- Diplomatic missions under diplomatic and consular arrangements as per condition
- Government and the judiciary
2- Social Welfare: - Some services which are for social welfare are exempt from service tax, which is in negative list in service tax department. Social welfare activities are exempted from the service tax.
3- Agriculture and animal husbandry: - these services are relating to growing, growing the agriculture products for the people. This includes agricultural, horticulture, forestry, poultry, dairy farming etc.
4- Financial services: - some financial services are also in the negative list of service tax department. It is hard to understand as the tax department favorite area is exempt a little bit. In financial sector only four services are in the negative list of service tax department which are as follows.
- Sale and purchase of securities/debts on a principal to principal basis
- Inter banking sale and purchase of foreign currency.
5- Transportation: - Some services in transportation also in the negative list of service tax department on which service tax does not apply. These services are mainly of public utility which is as follows.
- Metered taxies/Cab
- Auto rickshaws
- Ship of specified tonnage
- Transportation of goods outside India in ship, air or any means of transport and supply it to the transportation company.
In this regard one thing is important. Public transport like rail and metro is not in negative list of service tax. And whereas all mean of transportation outside India is exempted from service tax. The department should observe this transportation service tax again in my view.
6- Construction and real estate: - some construction works are also exempted from service tax like public works and building a residential house are exempt from service tax.
7- The paper is included in the negative list by service tax department.
Tags-service tax negative list,service exempt from service tax