Notifications for the Implementation of Negative List of Services

Notifications have been issued to take effect from 1 July 2012 for the implementation of taxation of services based on the Negative List of Services.
Exemptions
Significant amendments/ additions announced to the list of exempted services are summarized below:
 Service provided by advocates to other advocates or firm of advocates or business entities up to a turnover of Rs.10 lakh in the preceding financial year
 Services provided to or by an educational institution by way of auxiliary educational services and renting of immovable property are exempted from service tax
 Exemption to services provided to the Government and local authorities has also been extended to governmental authorities. These authorities are defined as a board, or an authority or any other body established with 90% or more participation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipality under article 243W of the Constitution;
 Projects involving construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration provided under a scheme of JNNURM and Rajiv Awaas Yojna
 Construction pertaining to monorail or metro projects
 Transportation of passengers by a ropeway, cable car or air-tram way
 Services provided to Government, local authorities or a governmental authority for the repairs and maintenance of an aircraft
 Services provided by sub-contractors by way of works contract to another main contractor who is providing works contract services which are exempt from Service Tax

Service provided in a taxable territory where both service provider and service receiver are located in a non-taxable territory
 Services of public libraries by way of lending of books, publications or any other knowledge-enhancing content or material
 Services by Employees State Insurance Corporation (ESIC) to persons governed under Employees Insurance Act
 Services by way of transfer of a going concern as a whole or an independent part thereof
 Services by way of public conveniences such as provision of facilities of bathrooms, washrooms, lavatories, urinals or toilets
 Services provided to foreign diplomatic missions
 Deduction to the extent of property tax paid on renting of immovable property
 Specified services received by exporter of goods
 Services provided by recognized Technology Business Incubator (TBI) or Science and Technology Entrepreneurship Park (STEP)
 Small service provider whose value of taxable services does not exceed Rs. 10 lakhs
 Services received by a unit located in SEZ or a developer of SEZ
Significant Changes or Amendments
 Abatement of 75% of the taxable value of construction of residential complex which includes the value of land
 Place of Provision of Services Rules been notified. Consequently, Export of Services Rules, 2005 and taxation of Services (Provided from outside India and received in India) Rules, 2006 rescinded
 Certain service tax notifications have been rescinded and CENVAT credit rules have been amended to give effect to the Negative List
 Notification for works contract composition scheme has been replaced
 Service tax rules amended to prescribe conditions governing Export of Services
 Point of Taxation Rules amended
 Telecommunication service and service portion in execution of a works contract are brought under the ambit of continuous supply of service
 Conditions, limitations and procedures for claim of rebate on taxes paid on inputs and input services pertaining to export of services have been notified
Source:
1. Notification No. 25 to 40 of 2012-ST dated 20 June 2012
2. Notification No. 28 of 2012-CE (NT) dated 20 June 2012