Consensus on widening service tax base emerged at the recent meeting of the Empowered Committee of State Finance Ministers.
This may prompt the union finance ministry to announce coverage of most of the services used by individuals and business in the Budget 2012-13 to be presented on March 16.
States expressed no objection to the centre widening its service tax net in the forthcoming Budget, as long as 35 services like ambulance, beauty parlours, marriage halls, interest on bank deposits, leasing of vehicles and machines are kept out of the ambit of the levy.
The centre has proposed introduction of a negative list service tax regime, meaning services out of the list would be taxed.
Earlier, the centre had released a negative list containing 22 services. At present, the tax at the rate of 10 percent is levied on 119 services. For the current fiscal, the centre hopes to mop up Rs 82,000 crore from this levy.