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
- Services provided by government and judiciary, the RBI, the UN, international bodies and diplomatic missions, public library
- Welfare activities by NGOs
- Funeral and burial services
- Agriculture services for growing, cultivating and harvesting
- Collection, transportation and disposal of garbage and sewerage
- Sale and purchase of securities and debts on principle to principle basis
- Interest on deposits
- Dividends on investment
- Transport of passengers in public transport, both by buses and railways
- Transport of passengers by three wheelers, taxies
- Construction of government building
- Infrastructure (building dams, tunnels, bridge, etc)
- Primary education and recognised education
- Health services provided by the government
- Religion services provided by people
I feel in the name of religious service, common man is fleeced by conmen. To screen such rouge elements, atleast they need to be registered with service tax authorities, if not under any other enactment. Exempting this service from service tax does not seem justified.