Negative list-based System of Tax on Services implies TWO things-
A list of services which will not be subject to service tax.
Other than the services mentioned in the negative list, all other services will become taxable which fall within the definition of the supply of services.
Currently, 38 services are included in the Negative List.
Accounting of service tax based on Negative list (effective from 1st July) is provided in Tally.ERP 9 Release 3.41.
Click the links given below for details on accounting service tax based on Negative list.