03 May 2013
services mentioned in negative list are not chargable to tax at all. as per charging section of service tax act.
services in mega exemption is chargable to tax but exempted by the goverment, hence not exempted since taxable.
an exemption can not be given for any thing which is not chargable since begining, hence for negative list services exemption not required.
though according to my opinion, govt. has put the services in negative list to provide the clarity on activities on which there were dispute about whether taxable or not. now after negative list no more dispute. In exemption govt. has selected those specific services which govt. find that they are taxable as per logical way but is exempted for the time being for the benefit of public, and will keep change the list as per requirement, In last budget few services which were exempted, now no more exempted.
14 June 2013
Any item mentioned in negative list is fully exempted and mega exemption is to be allowed by the govt. The expert is correct and I agree with him