Taxability of services rendered through art events
This query is : Resolved
24 June 2013
Hi, can anyone please advise on taxability of a firm organizing art events and providing consultancy in the field of arts.
24 June 2013
Depend upon the classification of services. Art is exempt from service tax but events is taxable.
25 June 2013
So will it get covered in entertainment event or a business exhibition. Also, entertainment tax does not apply.
25 June 2013
Only services by way of training or coaching in recreational activities relating to arts, culture or sports are exempt from service tax under exemption notification no. 25/2012-ST. Events and exhibition is not exempt from service tax.
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25 June 2013
1) ok thanks. so what about the positive list heads under sec 65 (105)? Does it still hold relevance or is sec 65(105) scrapped after negative list approach wef 01/07/2012?? Is Event management now not a specifically specified service due to cessation of Sec 65 (105)??
2) Also, what about the various Accounting heads to be used now as the accounting codes remain the same for return filing purpose?
2) Also, what about the various Accounting heads to be used now as the accounting codes remain the same for return filing purpose?
26 July 2025
Great questions! Here's a detailed explanation to clarify your doubts regarding the taxability of services related to art events and how the legal framework changed with the negative list introduction:
---
### 1) **Relevance of Section 65(105) after introduction of Negative List (from 01/07/2012):**
* **Section 65(105)** of the Finance Act, 1994 (pre-GST Service Tax law) contained a **positive list** of taxable services, i.e., it specifically listed all services taxable under service tax.
* From **1st July 2012**, India switched to a **negative list regime** for service tax under **Chapter V of the Finance Act, 1994**, which means:
* All services are taxable **except** those specifically exempted or on the negative list.
* So, the **positive list concept in Section 65(105) was effectively replaced**.
* Hence, **Section 65(105) was effectively scrapped** and **no longer applicable** for determining taxable services after 01/07/2012.
* **Event management** as a distinct service ceased to be listed under the positive list because now the focus is on the negative list and specified exemptions.
---
### 2) **Is Event Management now a specifically specified service?**
* Under the **negative list regime**, event management is **not separately specified** as a taxable service, but many services connected with events fall under taxable categories such as:
* **"Business Support Services"**
* **"Renting of Immovable Property"** (if space is rented)
* **"Consulting" or "Advisory" services** (if consultancy is provided)
* **"Outdoor Caterers"** or **"Mandap Keeper"** services, if applicable
* **"Admission to Entertainment Events"**, if applicable
* The **classification depends on the exact nature of services rendered** by the firm. For example:
* Organizing a concert or entertainment show may attract service tax under "Admission to Entertainment Events".
* Providing consultancy on arts is generally taxable under "Business Support Services", **except** where training or coaching in recreational activities related to arts is exempt (Notification No. 25/2012-ST).
---
### 3) **Accounting Codes for Service Tax Return Filing:**
* Even though the **taxation approach changed to negative list**, the **service codes** for return filing largely remained **aligned with old service categories** for consistency.
* You **should select the service code(s) based on the nature of your services**:
* Consultancy related to art → Use Business Support Services code (like 999292)
* Event management or organizing events → Use applicable codes like 999995 or 999997 depending on event type.
* The **service codes reflect the nature of service** for proper classification but no longer depend on the positive list under Section 65(105).
---
### **Summary:**
| Query | Answer |
| ------------------------------------------ | ----------------------------------------------------------------------------------- |
| Is Section 65(105) still relevant? | No, replaced by Negative List from 01/07/2012 onwards |
| Is Event Management a specified service? | No, but related services may be taxable under other heads depending on facts |
| Are arts-related training/coaching exempt? | Yes, if it’s coaching/training in recreational activities (Notification 25/2012-ST) |
| What about accounting codes? | Use service codes relevant to your service nature; codes still needed for returns |
---
If you want, I can help you with specific service codes or detailed tax treatment for any particular art event scenario you have. Would you like that?
---
### 1) **Relevance of Section 65(105) after introduction of Negative List (from 01/07/2012):**
* **Section 65(105)** of the Finance Act, 1994 (pre-GST Service Tax law) contained a **positive list** of taxable services, i.e., it specifically listed all services taxable under service tax.
* From **1st July 2012**, India switched to a **negative list regime** for service tax under **Chapter V of the Finance Act, 1994**, which means:
* All services are taxable **except** those specifically exempted or on the negative list.
* So, the **positive list concept in Section 65(105) was effectively replaced**.
* Hence, **Section 65(105) was effectively scrapped** and **no longer applicable** for determining taxable services after 01/07/2012.
* **Event management** as a distinct service ceased to be listed under the positive list because now the focus is on the negative list and specified exemptions.
---
### 2) **Is Event Management now a specifically specified service?**
* Under the **negative list regime**, event management is **not separately specified** as a taxable service, but many services connected with events fall under taxable categories such as:
* **"Business Support Services"**
* **"Renting of Immovable Property"** (if space is rented)
* **"Consulting" or "Advisory" services** (if consultancy is provided)
* **"Outdoor Caterers"** or **"Mandap Keeper"** services, if applicable
* **"Admission to Entertainment Events"**, if applicable
* The **classification depends on the exact nature of services rendered** by the firm. For example:
* Organizing a concert or entertainment show may attract service tax under "Admission to Entertainment Events".
* Providing consultancy on arts is generally taxable under "Business Support Services", **except** where training or coaching in recreational activities related to arts is exempt (Notification No. 25/2012-ST).
---
### 3) **Accounting Codes for Service Tax Return Filing:**
* Even though the **taxation approach changed to negative list**, the **service codes** for return filing largely remained **aligned with old service categories** for consistency.
* You **should select the service code(s) based on the nature of your services**:
* Consultancy related to art → Use Business Support Services code (like 999292)
* Event management or organizing events → Use applicable codes like 999995 or 999997 depending on event type.
* The **service codes reflect the nature of service** for proper classification but no longer depend on the positive list under Section 65(105).
---
### **Summary:**
| Query | Answer |
| ------------------------------------------ | ----------------------------------------------------------------------------------- |
| Is Section 65(105) still relevant? | No, replaced by Negative List from 01/07/2012 onwards |
| Is Event Management a specified service? | No, but related services may be taxable under other heads depending on facts |
| Are arts-related training/coaching exempt? | Yes, if it’s coaching/training in recreational activities (Notification 25/2012-ST) |
| What about accounting codes? | Use service codes relevant to your service nature; codes still needed for returns |
---
If you want, I can help you with specific service codes or detailed tax treatment for any particular art event scenario you have. Would you like that?
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