As per the budget proposal, metered taxis, entry to amusement facilities, second-class rail travel, and betting, gambling and lottery will not attract the 12 per cent Service Tax. The negative list of services, on which the increased Service Tax of 12 per cent will not be levied, include admission to entertainment events, access to amusement facilities and travel by radio taxis and auto rickshaws. Other important services which will not attract the tax include funeral, burial, mutate services and transport of deceased. According to the budget proposals of Finance Minister Pranab Mukherjee, the Service Tax will be levied on all services which are not mentioned in the negative list. In order to net about 1.24 lakh crore rupees from the Service Tax during 2012-13, the Minister has proposed to increase the rate of levy from 10 per cent to 12 per cent. In addition to existing services which are subject to the Service Tax, the negative list clarified that the tax will be levied on travel by first class and in air conditioned rail coaches, transport of goods by a transportation and courier agencies. As regards education, the Service Tax will not be levied on school, university education and approved vocational courses. The coaching classes and training institutions, however, will continue to be subject to the Service Tax.

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Category : Service Tax (3413)
Type : News (13981)
Tags : Budget (1957)

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