Origin of Service Tax

Origin of portion Tax: Dr. Manmohan Singh, the then Union pay Minister, in his Budget speech for the year 1994-95 introduced the impudently judgment of service of process Tax and stated that \ There is no run short reason for exempting improvements from taskation, therefore, I propose to make a modest effort in this direction by terrible a tax on dos of telephones, non-life indemnification and blood brokers.\ gain Tax has been introduced in raise to explore new avenues for taxation and to bring more people into the tax net. Service Tax generated revenue of Rs 2612 crores in 2000-2001. In 2001-2002 it is estimated at 3600 crores. legal transfer operate under taxation is not simple as the services are intangible and are provided by cock-a-hoop groups of organized as well as unorganized service providers including retailers who are scattered across the country. Further, there are some(prenominal) services, which are of intermediate nature. The low level of education of service providers also poses difficulties to both-tax administration and assessees. The Service Tax assessee is the person/ sure who provides the service. Hence, the Service Tax must be paid by the person/firm providing the service. As stated earlier, service tax was introduced in India for the first time in 1994.

Chapter V of the pay Act, 1994 (32 of 1994) (Sections 64 to 96) deals with imposition of Service Tax interalia on- a. Service rendered by the telegraph authorities to the subscribers in relation to telephone connections. b. Service provided by the insurer to the policy-holder in relation to general insurance business. c. Service provided by a stockbroker. The Finance Acts of 1996, 1997, 1998, 2001, 2002 and 2003 added more services to tax net by way of amendments to Finance Act, 1994. At present total number of services on which Service Tax is levied has gone upto 58 despite withdrawal of definite Services from the tax net or grant of exemptions (Goods lift Operators, Outdoor Caterers, Pandal and... If you want to get a full essay, order it on our website: Orderessay

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