CA Sandeep Kanoi

CA Sandeep KanoiSection 66D of Finance Act, 1994 specifies the Negative list of services i.e the Services on which Service Tax is not leviable. Section 66D is been inserted in Finance Act, 1994 by Finance Act, 2012 and been notified to be effective from 1st July 2012 vide  Notification No. 19/2012-ST dated 5 June 2012.

A negative list of services implies two things:(1) a list of services which will not be subject to service tax; (2) other than the services mentioned in the negative list, all services will be taxable which fall within the definition of ‘services’.

Negative List of Services are different from the exempt Services as exempt services are although taxable but government has exempted them from service tax, while service in Negative list are not taxable at all.


(a)services by Government or a local authority excluding the following services to the extent they are not covered elsewhere
(i) 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;

(Please Note Only specific services such as speed post etc are liable to Service Tax. Thus, basic mail service, money order service, pension payment etc is not liable to Service Tax)

(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
(iii) transport of goods or passengers; or
(iv) any service , other than services covered under clauses (1) to (iii) above, provided to business entities;

(Amended by Finance Act, 2015 w.e.f. from 01.04.2016 , vide Notification No. 06/2016-ST and Notification No. 15/2016-ST)



services by the Reserve Bank of India;

[Please note Services provided BY RBI are exempt (and not TO RBI)]



services by a foreign diplomatic mission located in India;

(Please Note- This exemption seems to be given in view of Vienna Convention which provides for grants immunity from local laws to the missions)

(d) services relating to agriculture or agricultural produce by way of
(i) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or seed-testing;

(Word Seed been Omitted wef 10.05.2013

(ii) supply of farm labour;
(iii) 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;

(Note Process includes process as Such as shelling of paddy or cleaning of wheat)

(iv) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;
(v) loading, unloading, packing, storage or warehousing of agricultural produce;
(vi) agricultural extension services;

(Please Note As per Section 65B (4) “agricultural extension” means application of scientific research and knowledge to agricultural practices through farmer education or training)

(vii) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce;
(e)trading of goods;
(f)services by way of carrying out any process amounting to manufacture or production of goods excluding alcoholic liquor for human consumption

(Amended by Finance Act, 2015 applicable from 1st June, 2015 vide Notification No.14/2015-Service Tax, dated 19th May, 2015)

(g)selling of space for advertisements in print media;
(h)service by way of access to a road or a bridge on payment of toll charges’,
(i)betting, gambling or lottery

Explanation – For the purposes of this clause, the expression “betting, gambling or lottery” shall not include the activity specified in Explanation 2 to clause (44) of section 65B;

(j) admission to entertainment event or access to amusement facility

(Omitted vide Finance Act,2015)

(k)transmission or distribution of electricity by an electricity transmission or distribution utility; 
(l)services by way of—

(i) pre-school education and education up to higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;

(iii) education as a part of an approved vocational education course ;

(Deleted by Finance Bill, 2016 and incorporated in Not. No. 25/2012 w.e.f. its enactment)

(m)services by way of renting of residential dwelling for use as residence;
(n)services by way of
(i) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;
(ii) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange or amongst banks and such dealers;
(o)service of transportation of passengers78, with or without accompanied belongings, by
(i) a stage carriage;

(Deleted by Finance Bill, 2016. W.e.f. from 01.06.2016)

(ii) railways in a class other than

(A)     first class; or

(B)     an air-conditioned coach;

(iii) metro, monorail or tramway;
(iv)       inland waterways;
(v)        public transport, other than predominantly for tourism purpose, in a vessel, between places located in India; and
(vi) metered cabs’ or auto rickshaws;
(p)services by way of transportation of goods—
 (i) by road except the services of

(A) a goods transportation agency; or

(B) a courier agency;

(ii) by an aircraft or a vessel from a place outside India up to the customs  station of clearance; or

(Deleted by Finance Bill, 2016. However, such services by Aircraft will be exempt under in Notification No. 25/2012-ST w.e.f. from 01.06.2016.)

(iii) by inland waterways;
(q)Funeral, burial, crematorium or mortuary services including transportation of the deceased.


 1Notification No. 06/2016-ST- Dated: 18.02.2016All services by Govt to business entities taxable from April 1, 2016
 2Notification No. 15/2016–ST dated 01.03.2016Services provided by government or local authorities to business entities
 3Notification No.14/2015-ST, dated 19.05.2015Service Tax Notification prescribing changes in service tax rates wef 01.06.2015


 4Notification No. 43/2012-ST ,dated 02-07-2012 Service tax exemption to Railways till 30.09.2012
5Notification No. 30/2012-ST, dated-20.06.2012 Taxable services & extent of service tax payable thereon
 6Notification No. 19/2012-ST dated:05.06.2012No Service-Tax on Individual Advocates, GTA etc & Negative List w.e.f. 1.7.2012

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  • kuberjoshi

    sir please confirm agriculture items relate service provided as unloading, loading & transportation are exempted

  • kuberjoshi

    sir please confirm agriculture items relate service provided as unloading, loading & transportation are exempted