I am getting confused with respect to negative list and mega exempted notification.please help me to remember the link between negative list and mega exemption notification
Negative List Vs. Mega Exemption Negative List U/s 66d Vs Mega Exemption Notification No.25/2012 Negative list u/s 66D:- the services mentioned under negative list are non taxable service which means they are out of coverage of service tax. Under this 17 services have been mentioned and any change in negative list can be done only through the amendment in the Finance Act, 1994. Mega Exemption vide Notification 25/2012:- under this service mentioned are taxable but exemption has been provided through the notification. Under this 39 services have been mentioned. And any changes in this can be done by notification. Services provided to the United Nations or a specified international organization but service provided by the United Nations or a specified international organization are taxable if not exempted anywhere. Health care services by a clinical establishment, an authorized medical practitioner or Para-medics (all service related to Health Care are exempt. “clinical establishment” means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases. “health care services means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma” Services by a veterinary clinic in relation to health care of animals or birds ( Like as in 2nd above). Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of charitable activities. Charitable activities means activities relating to - Public health by way of - (a) Care or counseling of (i) terminally ill persons or persons with severe physical or mental disability, (ii) persons afflicted with HIV or AIDS, or(iii) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; (b) Public awareness of preventive health, family planning or prevention of HIV infection Advancement of religion or spirituality Advancement of educational programmes or skill development relating to- (a) abandoned, orphaned or homeless children (b) physically or mentally abused and traumatized persons or prisoners (c) persons over the age of 65 years residing in a rural area Preservation of environment including watershed, forests and wildlife. 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. However, renting of precincts of religious place not meant for general public would not be covered under the exemption. “religious place means a place which is primarily meant for conduct of prayers or worship pertaining to a religion, meditation, or spirituality” Service Provider Service Receiver Taxability (a) arbitral tribunal Any person other than business entity(No limit of turnover) Exempt A business entity (Turnover =10 Lacs Preceding financial year) Exempt A business entity with a turnover up >10 lakh in the preceding financial year Reverse charge(Service Receiver ha to pay Service Tax) An advocate or partnership firm of advocates (legal services) An advocate or partnership firm of advocates providing legal services Exempt Any person other than a business entity Exempt A business entity with a turnover up =10 lakh in the preceding Financial year Exempt A business entity with a turnover up >10 lakh in the preceding financial year Reverse charge(Service Receiver ha to pay Service Tax) An advocate or partnership firm of advocates (other than legal service) Any person Taxable A person represented on an arbitral tribunal to an arbitral tribunal Any person Exempt Any person provide legal service except (an advocate or partnership firm of advocates) Any person Taxable Legal service means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority. Services of technical testing or analysis in relation to newly developed drugs, vaccines and herbal remedies, on human participants by a clinical research organization (approved by the Drug Controller General of India). Services by way of training or coaching in recreational activities relating to arts, culture or sports; In this, exemption is provided to training or coaching in recreational activities relating to all forms of dance, music, painting, sculpture making, theatre, sports, etc. In this category, choreographers, sport coaches would be covered. If above activities are done other than recreational purpose means on professional basis then these will be taxable. Recreation activities are done for fun or enjoyment. Services provided to an educational institution in respect of education exempted from service tax, by way of, (a) Auxiliary educational services; or (b) Renting of immovable property “Auxiliary educational services means any services relating to imparting any skill, knowledge, education or development of course content or any other knowledge – enhancement activity, whether for the students or the faculty, or any other services which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, including services relating to admission to such institution, conduct of examination, catering for the students under any mid-day meals scheme sponsored by Government, or transportation of students, faculty or staff of such institution.” Services provided to a recognized 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 recognized sports body; Service provided by individual such as selectors, commentators, technical experts etc are not exempt. “Recognized sports body means – (i) the Indian Olympic Association, (ii)Sports Authority of India, (iii) a national sports federation recognised by the Ministry of Sports and Youth Affairs of the Central Government, and its affiliate federations, (iv) national sports promotion organisations recognised by the Ministry of Sports and Youth Affairs of the Central Government, (v) the International Olympic Association or a federation recognised by the International Olympic Association or (vi) a federation or a body which regulates a sport at international level and its affiliated federations or bodies regulating a sport in India. Services by way of sponsorship of sporting events organized,- (a) By a national sports federation, or its affiliated federations, where the participating teams or individuals represent any district, state or zone; (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; (c) 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; There is no exemption to IPL. 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) A civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (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 of1958); (c) A structure meant predominantly for use as (i) an educational, (ii) aclinical, or (iii) an art or cultural establishment; (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; or (f) A residential complex predominantly meant for self-use or the use of their employees or other persons specified in the Explanation 1 to clause 44 of section 65 B of the said Act; “Residential complex means any complex comprising of a building or buildings, having more than one single residential unit”. “single residential unit means a self-contained residential unit which is designed for use, wholly or principally, for residential purposes for one family”. service tax.
Its a nice question. To be precise, Negative List is a list that is included in the Act itself to be Services exempted from Service Tax. Whereas Mega Exemption Notification Services are services exempted vide notifications and amendments to notification (N/N 25/2012). Amendment to Negative List can only be made by Finance Act or a Taxation Laws Amendment Legislation. Whereas amendment to Mega Exemption Notification is made by Deptt. vide amendment notifications, and it can be made effective from any time within year.
Hi In service tax that While Computation Of Taxable service That Negative List Services Can not Include But Mega Exemption Services Are Include But Those Are Exempt Under Mega exemption 25/2012. And On Negative List Service That Service Tax Can Not Leviable. And On Mega exemption Service Service Tax Leviable But That Is Exempt under 25/2012 Mega Exemption. Negative List service Means Service Tax Not Levy Mega Exemption Means Service Tax Levy But Exempt. Under Section 66 D 17 Service Include. in Mega exemption on 32 entry
Helloo bhavani... Negative list u/s 66D: - The services mentioned under negative list are non taxable service which means they are out of coverage of service tax. Under this, 17 services have been mentioned and any change in negative list can be done only through the amendment in the Finance Act, 1994. Mega Exemption Notification 25/2012 Amended through various Notifications: - Under this mentioned services are taxable but exemption has been provided through the notification. And any changes in this can be done by notification. the services included in the mega exemption notification are taxable but `**exempted**` by `**central government**` by way of notification remember the negative list services in the alphabetic order so that it will be easy ..and the sevices that are not covered will be placed in mega exemption list
Hi Its a nice question. To be precise, Negative List is a list that is included in the Act itself to be Services exempted from Service Tax. Whereas Mega Exemption Notification Services are services exempted vide notifications and amendments to notification (N/N 25/2012). Amendment to Negative List can only be made by Finance Act or a Taxation Laws Amendment Legislation. Whereas amendment to Mega Exemption Notification is made by Deptt. vide amendment notifications, and it can be made effective from any time within year. Negative List forms part of the Head Legislation, i.e. Finance Act 1994, as amended upto date; whereas Mega Exemption Notification is a supportive law. Though effect of both is same for services listed in there, However, purpose and powers differ w.r.t. both. I hope I have been able to clear your doubt. Happy to help!
hello bhavani, negative list services and mega exemption services are different.. - NEGATIVE LIST(S.66D): There are 17 type of services included in the negative list..these services are OUT OF THE AMBIT OF SERVICE TAX CHARGEABILITY .. Shortcut to remember Service Tax Negative List: Alphabetic Order Method (Amended by Finance Act, 2014 !!!) 1. A- Advertisement (Only Print Media) 2. B- Bridges 3. C- Cabs :-means transportation of passengers( radio taxi excluded) 4. D- Diplomatic mission (Embassy) 5. E- Electricity 6. F- Funeral (includes transportation of deceased) 7. G- Goods Transportation 8. H- House Residential 9 . I - Interest (Banking, Financial, Insurance) 10 .J - Journey :- Payment of Toll Charges. 11. K- Kheti (Agriculture) 12. L- Lottery (Betting,Gambling) 13. M- Manufacture of goods (on which Excise Duty is payable) N- ———O- ———P- ——— 14. Q- Qualification (Education) 15. R- RBI 16. S- Sarkar (Government) 17. T- Trading of Goods. theses are just key words for memorising all the 17 services ..strictly recommended to study all these services in detail - MEGA EXEMPTION NOTIFICATION: the services included in the mega exemption notification are taxable but EXEMPTED by CENTRAL GOVERNMENT by way of notification... in this case many services are to be remembered ! TIP :be perfect with negative list , so all the remaining services will come under mega exemption notification.. however u have to study all the services..use mnemonic method to remember services.. if u have any queries regarding any type of service,feel free to comment below.. (thanks to K.J for providing short cut )