Union finance Minister Pranab Mukherjee arrives at Parliament to present the budget 2012-13, in New Delhi. PTI Photo by Shahbaz Khan
Meira Kumar, P Chidambaram and LK Advani listen to Pranab Mukherjee present Budget 2012-13.
Industrialists watching Union finance minister Pranab Mukherjee presenting the annual Budget 2012-13, on the screens at CII in New Delhi. PTI Photo by Kamal Singh
TV combo grab shows Union finance Minsiter Pranab Mukherjee presenting General Budget 2012-13, as Speaker Meira Kumar tries to quieten protesting members in Lok Sabha on ...
TV grab shows Congress party general secretary Rahul Gandhi listening to the Budget speech of Union finance minister Pranab Mukherjee in Lok Sabha. Agencies
TV grab shows Lok Sabha members listening to the budget speech of finance minister Pranab Mukherjee in New Delhi. Agencies
A sniffer dog is used to secure sacks of financial papers related to the budget at the Indian Parliament hours before the Indian budget is ...
Workers carry sacks of financial papers related to the budget at the Indian Parliament hours before the Indian budget is presented, in New Delhi. Finance ...
Finance minister Pranab Mukherjee poses for the media in parliament prior to presenting the national budget in New Delhi. Government was due to deliver its budget ...
FM Pranab Mukherjee presents Budget 2012-13 as Prime Minister Manmohan Singh looks on.
Metered taxis, entry to amusement facilities, second-class rail travel, and betting, gambling and lottery will not attract the 12% service tax, as per the budget proposal.
The negative list of services, on which the increased service tax of 12% will not be levied, include admission to entertainment events, access to amusement facilities and travel by radio taxis and auto rickshaws.
Other important services which will not attract the tax include funeral, burial, mutate services and transport of deceased.
The service tax, according to the budget proposals of finance minister Pranab Mukherjee, will be levied on all services which are not mentioned in the negative list.
In order to net about Rs 1.24 lakh crore from the service tax during 2012-13, the minister has proposed to increase the rate of levy from 10% to 12%.
In addition to existing services which are subject to the service tax, the negative list clarified that the tax will be levied on travel by first class and in air conditioned rail coaches, transport of goods by a transportation and courier agencies.
As regards education, the service tax will not be levied on school, university education and approved vocational courses. The coaching classes and training institutions, however, will continue to be subject to the service tax.
In order to bring as many services as possible in the net, the government has come out with a very wide definition of service. With some exception, it has been defined service as "any activity carried out by a person for consideration".
The services sector account for about 59% of the country's Gross Domestic Product (GDP).