CA Student
15932 Points
Joined May 2011
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Originally posted by : hritik |
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in service tax,wat is d differnce between negative list and mega exemption notification?? |
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From the point of view of taxation, there is no difference between a service listed in negative list and a service finding place in mega exemption notification.
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The only difference is that services in negative list are not at all taxable as they have been excluded from the meaning of ‘service’ itself. As against this, exempted services are services by itself, but exempt from levy of Service Tax by way of Notification issued by the Central Government.
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Also, amendments to negative list can be made only by Parliament by way of amendment to the Finance Act, 1994 whereas exemptions could be enlarged or curtailed on the basis of notification.