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India Service Tax overhaul – Negative List

  • VAT
  • 12 January 2012 | Richard Asquith

India Service Tax overhaul – Negative List

The Indian Service Tax regime will change from 1 July 2012.

Currently, Service Tax, part of the Indian VAT CENVAT regime, are charged on services at varying, codified rates.

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


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.