More Services in Tax Net,-Ve List Regime Notified
All services except those explicitly exempted will attract tax from July 1 with the finance ministry notifying the negative list regime on Tuesday. Bollywood actors, air-conditioned travel on trains, participation in conferences, certain sports activities and non-compete fees in corporate world will face a 12% service tax. The Budget 2012-13 had proposed the switchover to the negative-list regime, taxing all services except those explicitly kept out of tax net. The shift could lead to additional revenues of about Rs 18,000 crore, said a finance ministry official. The negative list concept is practiced globally and sets the stage for launch of comprehensive indirect taxes reform the goods and services tax. Only 17 categories of services have been kept out the tax net.
Economic Times, New Delhi, 06-06-2012