A Critique of the Proposed National Education Policy Reform
Negative list
1. Definition of “Negative List” of Services
"negative list" means the services which are listed
in section 66D;
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7. Section 66D-
Negative list shall comprise following service
Serial No. 1 to 17
1. Services by Government or a local authority
excluding the following services to the extent they are
not covered elsewhere—
• Services by the Department of Posts by way of speed
post, express parcel post, life insurance and agency
services provided to a person other than Government;
• services in relation to an aircraft or a vessel, inside or
outside the precincts of a port or an airport;
• transport of goods or passengers; or
• support services, other than services covered under
clauses (i) to (iii) above, provided to business entities;
2. services by the Reserve Bank of India;
Continued….
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8. Section 66D-
Negative list shall comprise following service
3. services by a foreign diplomatic mission located in
India;
4. services relating to agriculture by way of—
• agricultural operations directly related to production of
any agricultural produce including cultivation,
harvesting, threshing, plant protection or seed testing;
• supply of farm labour;
• processes carried out at an agricultural farm including
tending, pruning, cutting, harvesting, drying, cleaning,
trimming, sun drying, fumigating, curing, sorting,
grading, cooling or bulk packaging and such like
operations which do not alter the essential
characteristics of agricultural produce but make it only
marketable for the primary market;
Continued….
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9. Section 66D-
Negative list shall comprise following service
• renting or leasing of agro machinery or vacant land
with or without a structure incidental to its use;
• loading, unloading, packing, storage or warehousing
of agricultural produce;
• agricultural extension services;
• services by any Agricultural Produce Marketing
Committee or Board or services provided by a
commission agent for sale or purchase of
agricultural produce;
Continued….
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10. Section 66D-
Negative list shall comprise following service
5. trading of goods;
DEEMED SALE :
Pursuant to amendment of Article 366 of the Constitution, the
following deemed transactions are also covered within the
definition of Deemed Sale :
A transfer , otherwise than in pursuance of a contract, of
property in any goods for cash, deferred payment or other
valuable consideration;
A transfer of property in goods (whether as goods or in
some other form) involved in the execution of a works
contract;
A delivery of goods on hire – purchase or any system of
payment by installments;
Continued….
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12. 6. any process amounting to manufacture or
production of goods;
“Process amounting to manufacture or production
of goods is a process on which duties of
excise are leviable under section 3 of the
Central Excise Act, 1944 or any process
amounting to manufacture of alcoholic liquors
for human consumption, opium, Indian hemp
and other narcotic drugs and narcotics on
which duties of excise are leviable under any
State Act for the time being in force”
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14. 7. selling of space or time slots for
advertisements other than
advertisements broadcast by radio or
television;
Taxable Non - Taxable
Sale of space or time for Sale of space for
advertisement to be advertisement in print media
broadcast on radio or
television
Sale of time slot by a Sale of space for
broadcasting organization advertisement in bill boards,
public places, buildings,
conveyances, cell phones,
automated teller machines,
internet
Aerial advertising
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15. 8. service by way of access to a road or a
bridge on payment of toll charges;
9. betting, gambling or lottery;
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16. Section 66D-
Negative list shall comprise following service
10. admission to entertainment events or access to
amusement facilities;
Entertainment Event’ : Section 65B of the Act defines
Entertainment Event as an event or a performance
which is intended to provide recreation, pastime, fun
or enjoyment, such as exhibition of cinematographic
films, circus, concerts, sporting events, fairs, pageants,
award functions, dance performances, musical
performances, theatrical performances including
cultural programs, drama, ballets or any such event or
programme’.
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18. 11. Transmission or distribution of electricity by an
electricity transmission or distribution utility :
Section 65B of the Act defines ‘Electricity transmission or
distribution utility’ as,
The Central Electricity Authority
A State Electricity Board
The Central Transmission Utility (CTU)
A State Transmission Utility (STU) notified under the
Electricity Act, 2003 (36 of 2003)
A distribution or transmission licensee licensed under the
said Act
Any other entity entrusted with such function by the Central
or State Government
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19. 12. services by way of—
• pre-school education and education up to higher
secondary school or equivalent;
• education as a part of a curriculum for obtaining a
qualification recognized by any law for the time
being in force;
• education as a part of an approved vocational
education course;
…. Continued
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20. ‘Equivalent’ : Presently, many schools in India
intend to affiliate themselves with the
universities located outside India. Such
affiliation enables them to teach the courses
provided by Universities located outside India.
More more students are opting for education in
schools affiliated with IB (International
Baccalaureate), CBSE, ICSE, etc. The Association
of Indian Universities (AIU) are required to
recognize such education and give its equivalent
in Indian condition. For Eg : AIU has rated IB
Diploma Programme at par with class 12th of
State Board. The word ‘Equivalent’ used in the
definition means that the course is equivalent to
the course taught in India by Board /
Universities. Such approved courses also would
be excluded from the purview of taxability.
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21. Section 66D-
Negative list shall comprise following service
13. services by way of renting of residential dwelling
for use as residence;
‘Bundled Service’ means a bundle of provision of various
services wherein an element of provision of one service is
combined with an element or elements of provision of any
other service or services. An example of ‘bundled service’
would be air transport services provided by airlines wherein
an element of transportation of passengers by air is
combined with an element of provision of catering service
on board. Each service involves differential treatment as
a manner of determination of value of two services for the
purpose of charging service tax in different.
Continued….
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24. 14. services by way of—
• extending deposits, loans or advances in so
far as the consideration is represented by
way of interest or discount;
• inter se sale or purchase of foreign
currency amongst banks or authorized
dealers of foreign exchange or amongst
banks and such dealers;
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25. Section 66D-
Negative list shall comprise following service
15. service of transportation of passengers, with
or without accompanied belongings, by—
• a stage carriage;
• railways in a class other than—
(A) first class; or
(B) an airconditioned coach;
• metro, monorail or tramway;
• inland waterways;
• public transport, other than predominantly for
tourism purpose, in a vessel between places
located in India; and
• metered cabs, radio taxis or auto rickshaws;
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26. Section 66D-
Negative list shall comprise following service
16. services by way of transportation of goods—
• by road except the services of—
(A) a goods transportation agency; or
(B) a courier agency;
• by an aircraft or a vessel from a place outside
India upto the customs station of clearance in
India; or
• by inland waterways;
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27. Transport of Goods by Road and Issue of
Consignment Note :
Eg. : ‘A’ of Mumbai intends to transport the goods
from Mumbai to ‘B’ of Jaipur, ‘A’ will deposit the
goods with a transporter say ‘Z’ who will issue the
consignment note in favour of consignee i.e ‘B’ in
Jaipur. ‘A’ will send the original copy of the
consignment note to ‘B’ to enable him to collect
the goods from the office of ‘Z’ situated in Jaipur.
The definition contemplates that the
consignment note must be issued by goods
transport agency.
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28. 17. funeral, burial, crematorium or
mortuary services including
transportation of the deceased.
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