What is Service Tax? Whether it is direct or indirect tax?
Service tax is an indirect tax levied on certain services
provided by certain categories of persons/firms/agencies.
Service sector was not taxed for considerably very long time.
For the first time, the services came to be taxed in 1994 Budget
through Chapter V of the Finance Act, 1994. However w.e.f.
01.07.2012 service tax is applicable on all services except
those either mentioned in Negative List or in Exemption
Notifications. What is the meaning of service? ‘Service’ has
been defined in the clause (44) of the new section 65(B) Act and
means any activity for consideration carried out by a person for
another person and includes a declared service .However it does
not include— a. any activity that constitutes only a transfer in
title of (i) goods or (ii) immovable property by way of sale,
gift or in any other manner b. such transfer, delivery or supply
of any goods which is deemed to be a sale within the meaning of
clause (29A) of Article 366 of the C