No service tax for non-AC rail, cabs and autos
The government has kept non-AC second class rail travel, Metro, pre-school and recognised educational institutions out of service tax net in the revised “Taxation of Service based on Negative List” draft released Friday.
It excludes services like insurance, postal services — other than post card, money orders and inland letters — security, trade fairs and exhibitions, transport of goods and passengers and warehousing from service tax.
Metered cabs or three-wheeler autos will be kept out of service tax. Airport services will be taxed.
All services not on the negative list will be taxed. This is an attempt to widen the tax net: 22 services will be in the negative list, against 27 proposed earlier.
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