Negative list

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Negative list

  1. 1. Definition of “Negative List” of Services "negative list" means the services which are listed in section 66D; CA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 10
  2. 2. ƌŽĂĚ ŽǀĞƌĂŐĞ ŽĨ ^ĞƌǀŝĐĞ ĐŽǀĞƌĞĚ ƵŶĚĞƌ EĞŐĂƚŝǀĞ ŝƐƚ ͗ Š‡ •‡”˜‹…‡• …‘˜‡”‡† ‹ –Š‹• …ƒ–‡‰‘”› …ƒ „‡ „”‘ƒ†Ž› …Žƒ••‹ˆ‹‡† ƒ• ˆ‘ŽŽ‘™• ǣ ƒȌ –ƒ–—–‘”› …–‹˜‹–‹‡• „Ȍ ‰”‹…—Ž–—”‡ ‘” ƒ‰”‹…—Ž–—”ƒŽ ’”‘†—…‡ ”‡Žƒ–‡† •‡”˜‹…‡• …Ȍ …–‹˜‹–‹‡• ™Š‹…Š ƒ”‡ —†‡” –ƒ–‡ ‹•– ‹Ǥ‡ ‹•–
  3. 3. Ƭ Š‡…‡ …ƒ‘– „‡ –ƒš‡† „› ‡–”ƒŽ ‘˜‡”‡– †Ȍ ƒ•‹… †—…ƒ–‹‘ ‡Ȍ
  4. 4. –‡”‡•– ‘ Ž‘ƒ• Ƭ ˆ‘”‡‹‰ ‡š…Šƒ‰‡ •ƒŽ‡Ȁ ’—”…Šƒ•‡ ƒ‘‰ ƒ• Ȁ ƒ—–Š‘”‹œ‡† †‡ƒŽ‡” ˆȌ ƒ—ˆƒ…–—”‹‰ ƒ…–‹˜‹–› ™Š‡”‡ ‡–”ƒŽ š…‹•‡ ‘” –ƒ–‡ ‡š…‹•‡ ’”‘˜‹•‹‘• ƒ’’Ž› ‰Ȍ ‡–‹‰ ˆ‘” ”‡•‹†‡–‹ƒŽ —•‡ǤCA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 11
  5. 5. š…Ž—•‹‘ ‘ˆ ƒ‹ •‡”˜‹…‡ †‘‡• ‘– ‡ƒ ‡š‡’–‹‘ –‘ •‡”˜‹…‡ —•‡† ˆ‘” ’”‘˜‹†‹‰ –Šƒ–ȋ‡‰ƒ–‹˜‡Ȍ •‡”˜‹…‡ ǣ • ’‡” •‡…–‹‘ ͢͢ ȋ͝Ȍ ‘ˆ ‹ƒ…‡ …–ǡ ͥͥ͝͠ ȋ‹–”‘†—…‡† ™Ǥ‡Ǥˆ ͝ǦͣǦ͜͞͝͞ȌǢ ”‡ˆ‡”‡…‡ –‘ ƒ •‡”˜‹…‡ ȋ‹Ǥ‡ ƒ‹ •‡”˜‹…‡Ȍ •ŠƒŽŽ ‘– ‹…Ž—†‡ ”‡ˆ‡”‡…‡ –‘ ƒ •‡”˜‹…‡ ™Š‹…Š ‹• —•‡† ˆ‘” ’”‘˜‹†‹‰ ƒ‹ •‡”˜‹…‡Ǥ Š—• •‹–—ƒ–‹‘• ƒ”‡ ’‘••‹„Ž‡ ™Š‡ Ǯƒ‹ •‡”˜‹…‡ǯ ‹• ‡‹–Š‡” ‡š…Ž—†‡† ‘” ‡š‡’– ˆ”‘ •‡”˜‹…‡ –ƒš ǡ „—– •‡”˜‹…‡ ’”‘˜‹†‡† „› •—„Ǧ…‘–”ƒ…–‘” –‘ –Š‡ Ǯƒ‹ •‡”˜‹…‡ǯ ’”‘˜‹†‡” ƒ› …‘‡ —†‡” –ƒš ‡–ǡ †‡ˆ‡ƒ–‹‰ –Š‡ ˜‡”› ’—”’‘•‡ ‘ˆ ‡š‡’–‹‘Ǥ ‘™‡˜‡”ǡ ‘” ‡‰ ǣ –Š‡”‡ ‹• ‡š‡’–‹‘ ‹ …ƒ•‡ ‘ˆ ™‘”• …‘–”ƒ…– •‡”˜‹…‡ǤCA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 12
  6. 6. Section 66D- Negative list shall comprise following service Serial No. 1 to 17 1. Services by Government or a local authority excluding the following services to the extent they are not covered elsewhere— • 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; • services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; • transport of goods or passengers; or • support services, other than services covered under clauses (i) to (iii) above, provided to business entities; 2. services by the Reserve Bank of India; Continued….CA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 13
  7. 7. Section 66D- Negative list shall comprise following service 3. services by a foreign diplomatic mission located in India; 4. services relating to agriculture by way of— • agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or seed testing; • supply of farm labour; • 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 the essential characteristics of agricultural produce but make it only marketable for the primary market; Continued….CA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 14
  8. 8. Section 66D- Negative list shall comprise following service • renting or leasing of agro machinery or vacant land with or without a structure incidental to its use; • loading, unloading, packing, storage or warehousing of agricultural produce; • agricultural extension services; • services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce; Continued….CA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 15
  9. 9. Section 66D- Negative list shall comprise following service 5. trading of goods; DEEMED SALE :Pursuant to amendment of Article 366 of the Constitution, the following deemed transactions are also covered within the definition of Deemed Sale : A transfer , otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration; A transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract; A delivery of goods on hire – purchase or any system of payment by installments; Continued….CA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 16
  10. 10. –”ƒ•ˆ‡” ‘ˆ –Š‡ ”‹‰Š– –‘ —•‡ ƒ› ‰‘‘†• ˆ‘” ƒ› ’—”’‘•‡ ȋ™Š‡–Š‡” ‘” ‘– ˆ‘” ƒ •’‡…‹ˆ‹‡† ’‡”‹‘†Ȍ ˆ‘” …ƒ•Šǡ †‡ˆ‡””‡† ’ƒ›‡– ‘” ‘–Š‡” ˜ƒŽ—ƒ„Ž‡ …‘•‹†‡”ƒ–‹‘Ǣ •—’’Ž› ‘ˆ ‰‘‘†• „› ƒ› —‹…‘”’‘”ƒ–‡† ƒ••‘…‹ƒ–‹‘ ‘” „‘†› ‘ˆ ’‡”•‘• –‘ ƒ ‡„‡” –Š‡”‡‘ˆ ˆ‘” …ƒ•Šǡ †‡ˆ‡””‡† ’ƒ›‡– ‘” ‘–Š‡” ˜ƒŽ—ƒ„Ž‡ …‘•‹†‡”ƒ–‹‘Ǣ •—’’Ž›ǡ „› ™ƒ› ‘ˆ ‘” ƒ• ’ƒ”– ‘ˆ ƒ› •‡”˜‹…‡ ‘ˆ ‰‘‘†•ǡ „‡‹‰ ˆ‘‘† ‘” ƒ› ‘–Š‡” ƒ”–‹…Ž‡ ˆ‘” Š—ƒ …‘•—’–‹‘ ‘” ƒ› †”‹ ȋ™Š‡–Š‡” ‘” ‘– ‹–‘š‹…ƒ–‹‘Ȍǡ ™Š‡”‡ •—…Š •—’’Ž› ‘” •‡”˜‹…‡ ‹• ˆ‘” …ƒ•Šǡ †‡ˆ‡””‡† ’ƒ›‡– ‘” ‘–Š‡” ˜ƒŽ—ƒ„Ž‡ …‘•‹†‡”ƒ–‹‘CA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 17
  11. 11. 6. any process amounting to manufacture or production of goods; “Process amounting to manufacture or production of goods is a process on which duties of excise are leviable under section 3 of the Central Excise Act, 1944 or any process amounting to manufacture of alcoholic liquors for human consumption, opium, Indian hemp and other narcotic drugs and narcotics on which duties of excise are leviable under any State Act for the time being in force”CA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 18
  12. 12. š…‹•ƒ„Ž‡ ‘‘†• •ŠƒŽŽ Šƒ˜‡ ‡ƒ‹‰ ƒ••‹‰‡† –‘ ‹– ‹ •‡…–‹‘ ͞ȋ†Ȍ ‘ˆ –Š‡ ‡–”ƒŽ š…‹•‡ …–ǡ ƒ‡Ž› Ȃ Dz š…‹•ƒ„Ž‡ ‰‘‘†• ‡ƒ• ‰‘‘†• •’‡…‹ˆ‹‡• ‹ –Š‡ ‹”•– …Š‡†—Ž‡ ƒ† –Š‡ ‡…‘† …Š‡†—Ž‡ –‘ –Š‡ ‡–”ƒŽ š…‹•‡ ƒ”‹ˆˆ …–ǡ ͥͤ͝͡ ƒ• „‡‹‰ •—„Œ‡…– –‘ –Š‡ †—–› ‘ˆ ‡š…‹•‡ ƒ† ‹…Ž—†‡• •ƒŽ–dzǤ š’Žƒƒ–‹‘ Ȃ ‘” –Š‡ ’—”’‘•‡ ‘ˆ –Š‹• …Žƒ—•‡ǡ Ǯ‰‘‘†•ǯ ‹…Ž—†‡• ƒ› ƒ”–‹…Ž‡ ǡ ƒ–‡”‹ƒŽ ‘” •—„•–ƒ…‡ ™Š‹…Š ‹• …ƒ’ƒ„Ž‡ ‘ˆ „‡‹‰ „‘—‰Š– Ƭ •‘Ž† ˆ‘” ƒ …‘•‹†‡”ƒ–‹‘ Ƭ •—…Š ‰‘‘†• •ŠƒŽŽ „‡ †‡‡‡† –‘ „‡ ƒ”‡–ƒ„Ž‡ǤCA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 19
  13. 13. 7. selling of space or time slots for advertisements other than advertisements broadcast by radio or television; Taxable Non - Taxable Sale of space or time for Sale of space for advertisement to be advertisement in print media broadcast on radio or television Sale of time slot by a Sale of space for broadcasting organization advertisement in bill boards, public places, buildings, conveyances, cell phones, automated teller machines, internet Aerial advertisingCA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 20
  14. 14. 8. service by way of access to a road or a bridge on payment of toll charges; 9. betting, gambling or lottery;‡…–‹‘ ͢͡ ‘ˆ –Š‡ …– †‡ˆ‹‡• Ǯ ‡––‹‰ ‘” ƒ„Ž‹‰ǯ ƒ• Dz’—––‹‰ ‘ •–ƒ‡ •‘‡–Š‹‰ ‘ˆ ˜ƒŽ—‡ǡ ’ƒ”–‹…—Žƒ”Ž› ‘‡›ǡ ™‹–Š …‘•…‹‘—•‡•• ‘ˆ ”‹• ƒ† Š‘’‡ ‘ˆ ‰ƒ‹ ‘ –Š‡ ‘—–…‘‡ ‘ˆ ƒ ‰ƒ‡ ‘” ƒ …‘–‡•–ǡ ™Š‘•‡ ”‡•—Ž– ƒ› „‡ †‡–‡”‹‡† „› …Šƒ…‡ ‘” ƒ……‹†‡–ǡ ‘” ‘ –Š‡ Ž‹‡Ž‹Š‘‘† ‘ˆ ƒ›–Š‹‰ ‘……—””‹‰ ‘” ‘– ‘……—””‹‰dz 21
  15. 15. Section 66D- Negative list shall comprise following service 10. admission to entertainment events or access to amusement facilities; Entertainment Event’ : Section 65B of the Act defines Entertainment Event as an event or a performance which is intended to provide recreation, pastime, fun or enjoyment, such as exhibition of cinematographic films, circus, concerts, sporting events, fairs, pageants, award functions, dance performances, musical performances, theatrical performances including cultural programs, drama, ballets or any such event or programme’.CA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 22
  16. 16. Ǯ —•‡‡– ˆƒ…‹Ž‹–›ǯ ǣ —•‡‡– ˆƒ…‹Ž‹–› Šƒ• „‡‡ †‡ˆ‹‡† ‹ –Š‡ …– ƒ• Ǯƒ ˆƒ…‹Ž‹–› ™Š‡”‡ ˆ— ‘” ”‡…”‡ƒ–‹‘ ‹• ’”‘˜‹†‡† „› ‡ƒ• ‘ˆ ”‹†‡•ǡ ‰ƒ‹‰ †‡˜‹…‡• ‘” „‘™Ž‹‰ ƒŽŽ‡›• ‹ ƒ—•‡‡– ’ƒ”•ǡ ƒ—•‡‡– ƒ”…ƒ†‡•ǡ ™ƒ–‡” ’ƒ”•ǡ –Š‡‡ ’ƒ”• ‘” •—…Š ‘–Š‡” ’Žƒ…‡• „—– †‘‡• ‘– ‹…Ž—†‡ ƒ ’Žƒ…‡ ™‹–Š‹ •—…Š ˆƒ…‹Ž‹–› ™Š‡”‡ ‘–Š‡” •‡”˜‹…‡• ƒ”‡ ’”‘˜‹†‡†ǯǤCA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 23
  17. 17. 11. Transmission or distribution of electricity by an electricity transmission or distribution utility :Section 65B of the Act defines ‘Electricity transmission or distribution utility’ as, The Central Electricity Authority A State Electricity Board The Central Transmission Utility (CTU) A State Transmission Utility (STU) notified under the Electricity Act, 2003 (36 of 2003) A distribution or transmission licensee licensed under the said Act Any other entity entrusted with such function by the Central or State GovernmentCA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 24
  18. 18. 12. services by way of— • pre-school education and education up to higher secondary school or equivalent; • education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force; • education as a part of an approved vocational education course; …. ContinuedCA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 25
  19. 19. ‘Equivalent’ : Presently, many schools in India intend to affiliate themselves with the universities located outside India. Such affiliation enables them to teach the courses provided by Universities located outside India. More more students are opting for education in schools affiliated with IB (International Baccalaureate), CBSE, ICSE, etc. The Association of Indian Universities (AIU) are required to recognize such education and give its equivalent in Indian condition. For Eg : AIU has rated IB Diploma Programme at par with class 12th of State Board. The word ‘Equivalent’ used in the definition means that the course is equivalent to the course taught in India by Board / Universities. Such approved courses also would be excluded from the purview of taxability.CA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 26
  20. 20. Section 66D- Negative list shall comprise following service 13. services by way of renting of residential dwelling for use as residence;‘Bundled Service’ means a bundle of provision of various services wherein an element of provision of one service is combined with an element or elements of provision of any other service or services. An example of ‘bundled service’ would be air transport services provided by airlines wherein an element of transportation of passengers by air is combined with an element of provision of catering service on board. Each service involves differential treatment as a manner of determination of value of two services for the purpose of charging service tax in different. Continued….CA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 27
  21. 21. —†Ž‡† ‡”˜‹…‡ —Ž‡ ǣ—Ž‡ ‹• Ȃ Ǯ
  22. 22. ˆ ˜ƒ”‹‘—• ‡Ž‡‡– ‘ˆ ƒ „—†Ž‡† •‡”˜‹…‡ ƒ”‡ ƒ–—”ƒŽŽ› „—†Ž‡† ‹ –Š‡ ‘”†‹ƒ”› …‘—”•‡ ‘ˆ „—•‹‡••ǡ ‹– •ŠƒŽŽ „‡ –”‡ƒ–‡† ƒ• ’”‘˜‹•‹‘ ‘ˆ ƒ •‹‰Ž‡ •‡”˜‹…‡ ™Š‹…Š ‰‹˜‡• •—…Š „—†Ž‡† ‹–• ‡••‡–‹ƒŽ …Šƒ”ƒ…–‡”ǯŠ‡”‡ˆ‘”‡ǡ ‹ˆ ”‡•‹†‡–‹ƒŽ Š‘—•‡ Ƭ ’Žƒ…‡ ‘ˆ „—•‹‡•• ‹• ‘‡ ’Žƒ…‡ ‹– ƒ› ‘– “—ƒŽ‹ˆ› —†‡” ‡‰ƒ–‹˜‡ Ž‹•– ‘ˆ •‡”˜‹…‡•ǤCA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 28
  23. 23. 14. services by way of— • extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount; • inter se sale or purchase of foreign currency amongst banks or authorized dealers of foreign exchange or amongst banks and such dealers;CA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 29
  24. 24. Section 66D- Negative list shall comprise following service 15. service of transportation of passengers, with or without accompanied belongings, by— • a stage carriage; • railways in a class other than— (A) first class; or (B) an airconditioned coach; • metro, monorail or tramway; • inland waterways; • public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and • metered cabs, radio taxis or auto rickshaws;CA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 30
  25. 25. Section 66D- Negative list shall comprise following service 16. services by way of transportation of goods— • by road except the services of— (A) a goods transportation agency; or (B) a courier agency; • by an aircraft or a vessel from a place outside India upto the customs station of clearance in India; or • by inland waterways;CA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 31
  26. 26. Transport of Goods by Road and Issue of Consignment Note :Eg. : ‘A’ of Mumbai intends to transport the goods from Mumbai to ‘B’ of Jaipur, ‘A’ will deposit the goods with a transporter say ‘Z’ who will issue the consignment note in favour of consignee i.e ‘B’ in Jaipur. ‘A’ will send the original copy of the consignment note to ‘B’ to enable him to collect the goods from the office of ‘Z’ situated in Jaipur. The definition contemplates that the consignment note must be issued by goods transport agency.CA Shekhar Sane - 98230-91364 (shekharsane@vsnl.net and shekhar@cashekharsane.com) 32
  27. 27. 17. funeral, burial, crematorium or mortuary services including transportation of the deceased.Dz‡ Š‹‰ Šƒ• –‘ „‡ ƒ’’”‡…‹ƒ–‡† –Šƒ– ƒ– Ž‡ƒ•– ƒˆ–‡” ‡ƒ–Šǡ –Š‡”‡ ‹• ‘ ‡”˜‹…‡ ƒšdzǨǨDzŠƒ• –‘ ‡–”ƒŽ ‘˜‡”‡– ˆ‘” dzǨ 33

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