States ask centre to keep 35 services outside the tax net

NEW DELHI: States have asked the Centre to keep 35 services outside the tax net. Such services include those in agriculture, education up to Class 12, transport of passengers and goods, those paid by clubs, beauty parlours, interest on bank deposits etc.

But they backed the Centre’s proposal to switch to the so-called negative list approach — such an approach in service tax means that all services will be taxed excluding those on the list.