The government on Wednesday exempted 14 more services from payment of service tax by including them in the negative list which shall come into effect from 1st of next month. 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.

According to an official release Finance Minister Pranab Mukherjee on Wednesday released a 107-page book 'Taxation of service: An Education Guide. On this occasion, he said, with the expansion of the service tax base, it would be possible for the Central Board of Excise and Customs (CBEC) to exceed the collection target of 1.24 lakh crore rupees in the current fiscal.

As per the guide, the government has widened the definition of 'Services' to bring in more activities under the tax net. At present, 119 services that come under 'positive list' are levied. 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. As per the negative list, services like metered taxis, auto rickshaws, betting, gambling, lottery, entry to amusement parks, transport of goods or passengers and electricity transmission or distribution by discoms have been kept in the negative list.

The other services which would be exempted from tax include, auxiliary educational services and renting of immovable property provided by educational institutions in respect of education exempt from service tax. The services provided by advocates to other advocates and business entities up to a turnover of 10 lakh rupees in the preceding financial year will be exempted from service tax. Besides, services provided to the government, local authorities or a government authority for the repair and maintenance of an aircraft would also come in the negative list. Other important services which will not attract the tax include funeral, burial, mutate services and transport of
deceased.

Coaching classes and training institutions will come under the net, though the tax will not be levied on school, university education and approved vocational courses, Travel in first class and in air-conditioned rail coaches, too, will attract service tax.

AIR correspondent adds that the government has collected 97,000 crore rupees on account of service tax in the last financial year. For the current fiscal , the government has hiked the service tax rate by two per cent to 12 per cent. The services sector account for about 60 per cent of the country's Gross Domestic Product.