All services except 17 in the negative list, will be taxedfrom July 1, the Finance Ministry has said.
Under the 'negative list' approach, services specified inthe list will remain outside the tax net.
The government has widened the definition of 'Services' tobring in more activities under the tax net. At present, 119 services that comeunder 'positive list' are levied.
The 'negative list" approach was proposed in theBudget.
Following assent of the President to the Finance Bill, theFinance Ministry said the new service tax regime will come into force from July1.
The Budget also hiked the service tax rate by two per centto 12 per cent.
Services like metered taxis, auto rickshaws, betting,gambling, lottery, entry to amusement parks, transport of goods or passengersand electricity transmission or distribution by discoms have been kept in thenegative list.
Other important services which will not attract the taxinclude funeral, burial, mutate services and transport of deceased.
Coaching classes and training institutions will come underthe net, though the tax will not be levied on school, university education andapproved vocational courses,
Travel in first class and in air-conditioned rail coaches,too, will attract service tax.
The services sector account for about 60 per cent of thecountry's Gross Domestic Product.
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 someexception, it has been defined service as "any activity carried out by aperson for consideration".
The government aims to garner Rs 1.24 lakh crore from theService Tax during 2012-13.