7/24/2019 Service Tax Basic Concepts

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Service Tax

Concept and Salient Features

Concept of Service Tax

1. Service tax is the tax on the value of services provided or to be provided.2. ST has no separate act. All the provisions are contained in the chapter V and VA of the

nance act of 1994.3. Central overn!ent has the po"er to lev# the service tax. $nder the %esiduar# entr# 9& of

$nion list. 'Soon it "ill be e(ective fro! the )ntr# 92C*4. Chapter V contains the lev#+collection, reistration, other procedures li-e appeal,

rectication, interest, penalt#, recover# "hereas chapter VA contains the advance rulin.. /t extends to "hole of /ndia except the state of 0a!!u and ash!ir.

Extend and Scope u/s 64:

1. /t extends to "hole of /ndia except to the state of 0a!!u and ash!ir.2. /ndia is dened as territor# of the union, territorial "aters, continental shelf, exclusive

econo!ic one and an# other !ariti!e one, it also includes the seabed and sub soiled

under territorial "aters, includes the air space above the union territor#, territorial "aters,

continental shelf and exclusive econo!ic ones and an# other !ariti!e one.3. Service tax extends in all above !entioned places. An# serviced provided in construction if

installations structure, vessel for the extraction of !ineral oil or natural as and suppl#

thereof. And also an# serviced provided to or b# the! for the suppl# of oods for the said

activities.

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