India Service Tax overhaul – Negative List
- 11 January 2012 | Richard Asquith
The Indian Service Tax regime will change from 1 July 2012.
This is now moving to a ‘Negative List’ system, meaning that all services are taxable unless there specified on the list. There will be over 15 categories within the Negative List, and this is expected to rise. They are similar in nature to the European reduced or nil-rated lists, so include public services, financial services, education and the supply of power and water.
Goods continue to be exempt from Indian Service Tax.
In addition, Service Tax declarations will no longer by required every six months. They will move to monthly or quarterly declarations