FinMin seeks public opinion on negative list of services

Moving a step closer to the proposed goods and services tax,the finance ministry has initiated a public debate on a negative list of services that would be excluded from the ambit of the tax. The ministry has invited suggestion from industry chambers including Ficci,Assocham,PHDCCI and CII as well as institutions like NIPFP by June 15. The Directorate General of Service Tax will then prepare a concept paper on the issue.

The main issues that are sought to be deliberated in the debate are advantages and disadvantages of a negative vis-a- vis a positive list,the right approach for India,the international experience of taxation of services based on negative list,important issues arising by moving towards the taxation of services based on negative list,definition of the term service and possible list of services that merit to be included in the negative list, a finance ministry release said.

It has also sought views on areas that should be exempted separately even after moving towards the proposed negative list and the revenue implication of moving towards negative list.