Service Tax

assistance assess is a form of indirect impose imposed on contract improvements called ratable serve ups. Service tax cannot be levied on any service which is not included in the list of assessable services. Over the past few years, service tax been expanded to gallop new services. The objective behind levying service tax is to reduce 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 gradually increase the list of taxable services until most services fall within 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 first brought into force with effect from 1 July 1994. All service providers in India, except those in the state of Jammu and Kashmir, be required to pay a Service Tax in India. initially only thr ee services were brought to a lower place the net of service tax and the tax rate was 5%. Gradually more services came under the ambit of Service Tax.The rate of tax was increased 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% teaching method cess on the amount of Service Tax was also introduced. In the sodality Budget of India for the year 2006-2007, service tax was increased from 10% to 12%. On February 24, 2009 in order to give relief to the industry reeling under the impact of economic recession, The rate of Service Tax was reduced from 12 per cent to 10 per cent.