15 services likely to be exempted from service tax- No Death Tax and No Service Tax on Funeral

The finance ministry has been working on a negative list of services even as it prepares for a transition to the proposed Goods and Services Tax (GST). The list is now ready and the ministry plans to post the details on its website for seeking public comments. Officials said that all other services, except those specified in the negative list, will be taxed at the normal service tax rate. The Centre has short-listed about 19 services, including interest paid on deposits by banks, dividend paid by companies on shares, transport of passengers in public transport, and funeral and burial agencies, which will be exempt from paying tax. At present, the Centre imposes a 10 per cent tax on 119 services.

THE GOVERNMENT OF INDIA HAS EXEMPTED THE FUNERAL SERVICE FROM THE SERVICE TAX NET!

SO WE  ARE SAVED AFTER DEATH!

List of 15 services , likely to be in Negative List

1. Services provided by government and judiciary, the RBI, the UN, international bodies and diplomatic missions, public library
2. Welfare activities by NGOs
3. Funeral and burial services
4. Agriculture services for growing, cultivating and harvesting
5. Collection, transportation and disposal of garbage and sewerage
6. Sale and purchase of securities and debts on principle to principle basis
7. Interest on deposits
8. Dividends on investment
9. Transport of passengers in public transport, both by buses and railways
10. Transport of passengers by three wheelers, taxies
11. Construction of government building
12. Infrastructure (building dams, tunnels, bridge, etc)
13. Primary education and recognised education
14. Health services provided by the government
15. Religion services provided by people

Related posts:

1. FAQ on Service Tax on receipt of services from outside India [Import of services]
2. Service tax on Air Travel, Rate and Services at the airports free from service tax
3. Finance Ministry Initiates Public Debate on Negative list for Taxation of Services
4. Service tax waived on power supply, services within ports
5. Preparation of negative list for service tax likely to start soon