The government has announced that 14 more services will be exempted from payment of service tax by including them in the negative list. The order will come into effect from July 1.
With the inclusion of 14 items, the total number of services in the negative list will go up to 38. All other services which do not figure in the list would be taxed.

Releasing the book 'Taxation of service: An Education Guide' yesterday Finance Minister Pranab Mukherjee said that with the expansion of the service tax base, it would be possible for the Central Board of Excise and Customs to exceed the collection target of Rs 1.24 lakh crore in the current fiscal. As per the guide, the 14 services which will be exempted from payment of tax include lending of books, publications or any other knowledge enhancing content or material by public libraries.

Besides, services provided to the government, local authorities or a government authority for the repair and maintenance of an aircraft will also come in the negative list.Also, services provided by advocates to other advocates and business entities up to a turnover of Rs 10 lakh in the preceding financial year is exempt from service tax.