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The Negative List Taxation introduced by the Finance Bill 2012 substantially reinvents the law on Service Tax and will have a deep impact on service transactions. The authors, well known experts in the field of service-tax, have meticulously studied the entire law on the subject and have explained the implications of the proposed amendments in a succinct and clear manner. A pdf copy of the Guide is available for download<\/a><\/strong> <\/p>\n The Finance Minister has proposed paradigm shift in service tax law in Union Budget, 2012. From selective approach of levy of service tax on taxable services, this years budget has shifted to negative list of services. Until this year, the service tax was payable on 117 taxable services. Now it is proposed that barring 17 services in negative list, all services will become taxable from the date to be notified upon passage of the bill. A list of exempted services is also proposed. The levy specifically provides for \u201cdeclared services\u201d and definitions of these services are given. First time after introduction of service tax in 1994, definition of the term, \u201cservice\u201d is provided in the law. The Negative List Taxation introduced by Service Tax substantially reinvents the law on Service Tax and will have a deep impact on service transactions. The introduction of the Negative List prior to the introduction of GST leads to significant gaps in relation to generation and use of tax credits. This anomaly will doubtless add to the real indirect tax cost of transactions in India.\n<\/p>\n <\/p>\n\n