Which 17 Services in Negative List are Exempt from Service Tax in India ?

March 17, 2012 · Author: · Category: / 

Except the Following 17 Services in the Negative List, all other Services rendered by Lawyers, Doctors, Hotels, AC Trains, etc are under the purview of Service Tax now effective 01-APR-2012.

Negative List of 17 Services Exempt from Service Tax

(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;
(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) support services, other than services covered under clauses (i) to (iii) above, provided to business entities;

(b) services by the Reserve Bank of India;
(c) services by a foreign diplomatic mission located in India;
(d) services relating to agriculture by way of—
(i) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or seed testing;
(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;
(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;
(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) any process amounting to manufacture or production of goods;
(g) selling of space or time slots for advertisements other than advertisements broadcast by radio or television;
(h) service by way of access to a road or a bridge on payment of toll charges;
(i) betting, gambling or lottery;
(j) admission to entertainment events or access to amusement facilities;
(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;
(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 passengers, with or without accompanied belongings, by –
(i) a stage carriage;
(ii) railways in a class other than –
(A) first class; or
(B) an airconditioned coach;
(iii) metro, monorail or tramway;
(iv) inland waterways;
(v) public transport, other than predominantly for tourism purpose, in a vessel of less than fifteen tonne net; and
(vi) metered cabs, radio taxis 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 to the first customs station of landing in India; or
(iii) by inland waterways;
(q) funeral, burial, crematorium or mortuary services including transportation of the deceased.


4 Responses to “Which 17 Services in Negative List are Exempt from Service Tax in India ?”

  1. INDRAJIT DAS on February 3rd, 2013 09:44


  2. shrinivas on June 10th, 2014 16:32

    Certification of Pollution level/pollution level test & water test to government organisation was not covered. Now please suggest weather covered under service tax or not after introduction of negative list applicable from July-2012

    Thanks with regards

  3. P. CHANDRA SEKARAN on July 18th, 2014 17:00

    Certification of Pollution levels / pollution level test and water tests for public limited companies is not covered in the negative list applicable from July – 2012 for exemption of service tax. Please let me know the rule on levying Service Tax for these services applicable currently.
    Thanks and regards
    Chandra sekaran

  4. Kirti N.Suthar on May 31st, 2015 18:18

    I want to know regarding service tax for service provided by a contractor to a project wholly owned by Government / semi Government.Whether service provided by a contractor like construction of canal/Dam, maintenance & repair of canal/Dam, manpower provided for irrigation management etc. are covered under service tax? These services provided by contractor are for benefit to farmers doing irrigation in their fields to grow crops, which in turn benefits to nation.If service tax is to be levied what is the rate of service tax.

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