Revised Negative List of Services

Dated:18^th November 2011

The Central Board of Excise & Custom has issued Revised Concept Paper on the “Taxation of Services Based on a Negative List”. The Negative List of Service as revised is stated here:

Revised Negative List of Services

Sector	S. No.	Negative List
1. By specified persons	1.	All services other than notified services provided by government Proposed notified services: 1. Business promotion or business support services 2. Construction/works contract 3. Insurance services 4. Port or airport services 5. Postal services other than under Universal Service Obligations (post card, inland letter and money order) 6. Renting of an immovable property or right to enter or use an immovable property 7. Security 8. Trade fairs and exhibitions 9. Transport of goods and passengers 10. Warehousing
	2.	Services by international bodies and diplomatic missions under diplomatic and consular arrangements as per laid down conditions
2. Social welfare and public utilities	3.	Services by organizations registered as non-profit entities under the Income Tax Act 1961 (DTC 2012) in matters relating to public and social welfare activities substantially at or below the costs (excluding health & education)
	4.	Funeral, burial, crematorium and mortuary services
3. Financial Sector	5.	Sale, purchase or acquisition of securities, debts, mutual funds and actionable claims on principal-to-principal basis excluding (1)services in relation to such transactions and (2) when acquired in lieu of a service
	6.	Interest or discount on cheques, promissory notes, bills of exchange or debt instruments
	7.	Dividend on investments
	8.	Sale and purchase of foreign currency amongst banks and/or authorized dealers of foreign exchange
4.Transport	9	Transport of passengers with accompanied belongings by: (a) Non-AC second class of passenger travel by railway and any class by metro and mono-rail; (b) Public transport buses on a point-to-point basis (except tourist buses) and stage-carriage basis; (c)  Public transport in ship or vessel of less than 15 net tonnage on a point-to-point basis (except tourist purposes); (d)  Metered cabs or three-wheeler auto-rickshaw
5. Construction & Real Estate	10	Construction, works-contract, repair, alteration, renovation or restoration of: (a) Specified infrastructure for larger public good; (b) Residential building comprising a single dwelling unit
	11	Renting of personal dwellings in excess of Rs 1 lakh per month per dwelling
6. Education	12	Pre-school, school and recognized education** and vocational training recognized by NCVT except placement services and donations or similar charges in relation to admission
7. Health	13	Services by clinical establishments except in relation to health & fitness, weight reduction programmes, health check-up and cosmetic or plastic surgery;
8. Others	14	Copyright services of original literary, dramatic, musical and artistic works.
	15	Services provided by independent journalists, PTI & UNI for providing news
	16	Services provided by sportspersons, as a player, coach or referee/umpire and performing artists in that capacity (excluding as brand ambassadors)
	17	Services provided by a trade union to its members
	18	Representational services provided by an advocate to individuals
	19	Services to own members by an exempt entity by way of reimbursement of charges
	20	Tolls except services in relation to collection of tolls
	21	Betting and gambling except services in relation to promoting, marketing or organizing games of chance, including lottery services
	22	Advertisements other than advertisements published in newspapers or broadcast by radio or TV or displayed in other electronic media

*Government means the Union, State and local self government and government regulatory bodies established under an act but shall not include any other entity established under the Companies Act 1956 or any other law for the time being in force.

**Recognized education means education leading to the award of a certificate or degree recognized by a body established by an Indian law.

Nalin Bhandari
Chartered Accountant
Cell:+919930018666