The new service tax regime comes in to force from tomorrow. All services except the 38 services figuring in the negative list will attract 12 per cent service tax.

The government has widened the definition of 'Services' to bring in more activities under the tax net. Till now, 119 services has come under 'positive list' and these are subject to the levy.

But, 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 and will not attract the tax.

Coaching classes and training institutions will come under the net, though the tax will not be levied on school, university education and approved vocational courses.

Railway Minister Mukul Roy has said railways will not introduce service tax on freight and fare from tomorrow saying he has written to Prime Minister Manmohan Singh, who is now looking after the Finance portfolio, on the issue.

The new approach to taxation of services is intended to take the country and the economy a step closer towards the introduction of Goods and Service Tax - GST.