Section 66D of Finance Act, 1994 provides the Negative list of services. Certain amendments have been made in
negative list of services in Union Budget 2015-16. These amendments will be effective from date of notification in the Official Gazette. Let us go through these amendments in brief.
1. Section 66D(a) provides for services provided by Government or a local authority to be exempt from service tax except certain services. This exception included support services [Sec. 66D(a)(iv)] on which service tax was leviable. The words “support services” have been substituted or replaced with the words “any service”. Consequently, any service provided by Government or a local authority to business entities will be chargeable to service tax.
2. Section 66D(f) provided that any process amounting to manufacture or production of goods to be exempt from service tax. Clause (f) is now replaced as services by way of carrying out any process amounting to manufacture or production of goods excluding alcoholic liquor for human consumption. Thus, services related to any process amounting to manufacture or production of alcoholic liquor for human consumption will be chargeable to service tax.
3. Section 66D(i) exempts betting, gambling or lottery from service tax. The amendment provides that these activities will not include activities specified in Explanation 2 to section 65B(4)
4. Section 66D(j) provided exemption from service tax of service provided by way of admission to entertainment events or access to amusement facilities. Clause (j) has been omitted. Henceforth, such services will be chargeable to service tax. However, service tax is to be levied on service by way of admission to entertainment event of concerts, non-recognized sporting events, pageants, music concerts, award functions, if the amount charged is more than Rs. 500 for right to admission to such an event.