Mumbai: A number of services, including legal, education, health, sports and performances of Bollywood actors, are among the 44 items that will come under tax net as part of a package to compensate states for phasing out the central sales tax.

While as many as 44 services will become expensive from next fiscal with the levy of service tax, revenue from these would be transferred to the states as per the agreement reached between the union finance ministry and state finance ministers.

The states would also get 100 per cent revenue from the 33 existing services, on which the centre transfers only 30.5 per cent of the revenue to the states. These services include private security, real estate agencies, catering, tour operator, dry cleaning and business auxiliary.

In all, the centre has agreed to transfer the entire revenue from 77 services to states from next fiscal. For the first year the centre would collect the taxes and transfer it to the states. It may later shift tax collection to the states.

This is part of a compensation package for states for revenue loss of around Rs6,250 crore due to the proposed cut of CST from four per cent to three per cent from April 2007.

However, if for some reason tax is not imposed on these 44 services, states would be compensated through budgetary support, the sources said.

However, the cabinet has to clear the proposals and the compensation package. Details regarding the services are yet to be worked out.