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TMI BlogBUDGET CHANGES IN NEGATIVE LIST - PART IIX X X X Extracts X X X X X X X X Extracts X X X X ..... BUDGET CHANGES IN NEGATIVE LIST - PART II - By: - Dr. Sanjiv Agarwal - Service Tax - Dated:- 17-4-2015 - - The following change in the negative list shall be applicable from the notified date after the enactment of Finance Bill, 2015: Processes amounting to Manufacture [ Clause (f) of Section 66D ] Finance Bill, 2015 has amended the entry (f) to carve out from the negative list, process amounting to manufacture or production of alcoholic liquor for human consumption. Consequently, Service Tax shall be levied on bottling / job work / contract manufacturing of potable liquor (meant for human consumption) for a consideration. Alcoholic liquor meant for industrial use or for any other purpose shall still be covered under negative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... list (e.g. industrial spirits etc). Certain specified job works / production processes are exempt from Service Tax vide Entry No. 30 of exemption Notification No. 25/2012-ST. To give effect to the exclusion of processes in relation to alcoholic liquor from negative list, exemption under Notification No. 25/2012-ST has also been amended to exclude exemption to intermediate production processes / job works in relation to alcoholic liquor meant for human consumption. It may, however, be noted that manufacture of liquor meant for human consumption is subject to state excise duties and not Central Excise Duty under the Central Excise Act, 1944 . CBEC vide letter DOF No. 334/5/2015-TRU dated 28.02.2015 has clarified the amendment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows - The entry in the Negative List that covers service by way of any process amounting to manufacture or production of goods [ section 66D (f) ] is being pruned to exclude any service by way of carrying out any processes for production or manufacture of alcoholic liquor for human consumption. Consequently, Service Tax shall be levied on contract manufacturing/job work for production of potable liquor for a consideration. In this context, the definition of the term process amounting to manufacture or production of goods [ section 65 B (40) ] is also being amended, along with the Negative List entry [ section 66D (f) ], with a consequential amendment in S. No. 30 of Notification No. 25/12-ST , to exclude intermediate producti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of alcoholic liquor for human consumption from its ambit. Admission to entertainment event or access to amusement facilities [ Clause (j) of Section 66D ] Finance Bill, 2015 has omitted clause (j) of section 66D with effect from notified date after enactment. The services of admission to entertainment event or access to amusement facilities shall therefore, be taxable from notified date and no longer part of negative list. Consequently, definition of 'amusement facility' in section 65B(9) and 'entertainment event' in section 65B(24) have also been omitted. This change will have the following impact on taxability- Service Tax shall be levied on the service provided by way of access to amusement fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cility providing fun or recreation by means of rides, gaming devices or bowling alleys in amusement parks, amusement arcades, water parks and theme parks. Service tax will be levied on service by way of admission to entertainment event of concerts, pageants, musical performances concerts, award functions and sporting events other than the recognized sporting event, if the amount charged is more than ₹ 500 for right to admission to such an event. However, the existing exemption, by way of the Negative List entry to service by way of admission to entertainment event, namely, exhibition of cinematographic film, circus, recognized sporting event, dance, theatrical performance including drama and ballet shall be continued, through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the route of exemption. Being brought into Service Tax net, such services, shall however, enjoy exemptions as inserted in Notification No. 25/2012-ST by Notification No. 6/2015-ST dated 1.3.2015. These exemptions are in Entry No. 45 and 47 of the exemption Notification as follows - 45. Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo. 47. Services by way of right to admission to,- (i) exhibition of cinematographic film, circus, dance, or theatrical performance including drama or ballet; (ii) recognised sporting event; (iii) award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event, where the consideration for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admission is not more than ₹ 500 per person. The Notification also defines the terms recognized sporting event, tiger reserve, wildlife sanctuary and zoo. CBEC vide letter DOF No. 334/5/2015-TRU dated 28.02.2015 has clarified as follows - The Negative List entry that covers admission to entertainment event or access to amusement facility is being omitted [ section 66D (j) ]. Consequently, the definitions of amusement facility [ section 65 B (9) ] and entertainment event [ section 65B(24) ] are also being omitted. The implication of these changes are as follows - Service Tax shall be levied on the service provided by way of access to amusement facility providing fun or recreation by means of rides, gaming device ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or bowling alleys in amusement parks, amusement arcades, water parks and theme parks. Service tax to be levied on service by way of admission to entertainment event of concerts, pageants, musical performances concerts, award functions and sporting events other than the recognized sporting event, if the amount charged is more than ₹ 500 for right to admission to such an event. However, the existing exemption, by way of the Negative List entry, to service by way of admission to entertainment event, namely, exhibition of cinematographic film, circus, recognized sporting event, dance, theatrical performance including drama and ballet shall be continued, through the route of exemption. For this purpose a new entry is being insert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in notification No. 25/12-ST. The term recognized sporting event has been defined in the proposed amendment in the said notification. (To be continued ..) - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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