applicability of service tax in India

Some major points on history of service tax:

1. service tax was introduced in India in the year 1994

2. it was introduced first time on 3 services which were:

          a. services rendered by telegraph authorities  in relation to telephone connection.

          b. services provided by insurer to the policy holder in relation to general insurance business.

          c. services by stockbrokers.

3.service tax was initially levied in India by the Constitution entry no. 97 of the union list.

4. it is applicable to the whole of India except the state of Jammu and Kashmir.

5. the provisions related to service tax are given in the chapter V and V(a) of the finance Act 1994.

6. it was introduced in India on the recommendation of  Dr. Raja j Challiah committee.

7. it is levied in India on the selective approach.

8. it is governed by CBEC- central board of excise and customs.

9. w.e.f 1.4.2012 the rate of service tax has been increased to 12.36% including education cess and senior higher education cess.

10. service tax is not payable if the aggregate value of taxable services does not exceed INR 10,00,000.