Service Tax

Service impose is a fashion of indirect tax income imposed on specified function called taxable serve. Service tax cannot be levied on any help which is not include in the list of taxable proceedss. oer the past few years, benefit tax been expanded to cover new run. The accusing behind levying service tax is to dilute the degree of intensity of taxation on manufacturing and trade without forcing the government to compromise on the revenue needs. The intention of the government is to in stages increase the list of taxable services until most services fall deep down the scope of service tax.For the purpose of levying service tax, the value of any taxable service should be the gross amount charged by the service provider for the service rendered by him. Service Tax was low gear brought into force with effect from 1 July 1994. only service providers in India, except those in the state of Jammu and Kashmir, are required to stipend a Service Tax in India. Initially only th ree services were brought under the net of service tax and the tax site was 5%. stepwise more services came under the mountain range of Service Tax.The localize of tax was increase from 5% to 8% w. e. f 14 May 2003. From 10 September 2004 the rate of Service Tax was enhanced to 10% from 8%. Besides this 2% learning cess on the amount of Service Tax was also introduced. In the Union work out of India for the year 2006-2007, service tax was change magnitude from 10% to 12%. On February 24, 2009 in order to give relief to the diligence reeling under the impact of economic recession, The rate of Service Tax was reduced from 12 per cent to 10 per cent.