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Barring betting, gambling and classical dance forms, get ready to pay more for all your leisure activities, including a trip to the theatre, or even hiring a magician for your child’s birthday. All services except 17 in the negative list, will be taxed from July 1, t he Finance Ministry has said.

The government has widened the definition of ‘Services’ to bring in more activities under the tax net. At present, 119 services that come under ‘positive list’ are levied. Those services outside the list will be taxed, include astrologers, marriage-makers, actors, private tutors, board of directors, judges or reality shows, horse breeding, modern theaters, magic shows and even brand ambassadors!

[caption id=“attachment_337099” align=“alignleft” width=“380” caption=“The government aims to garner Rs 1.24 lakh crore from the Service Tax during 2012-13.”]  [/caption]

Coaching classes and training institutions will also come under the net, though the tax will not be levied on school, university education and approved vocational courses, Travel in first class and in air-conditioned rail coaches, too, will attract service tax.

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Service tax will also be levied on construction of more than one unit.New work contracts for immovable property , private roads, renting to the government and NGOs will be taxed. The services sector account for about 60 percent of the country’s Gross Domestic Product.

However services like metered taxis, auto rickshaws, betting, gambling, lottery, entry to amusement parks, transport of goods or passengers and electricity transmission or distribution by discoms have been kept in the negative list. Other important services which will not attract the tax include funeral, burial, mutate services and transport of deceased.

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 government aims to garner Rs 1.24 lakh crore from the Service Tax during 2012-13.