Useful for CA CS CMA ICWA November/December 2015

2. Service Tax Basics
 Service Tax-
 -- is an indirect tax levied by the Central Government
on services provided by any person
 It extends to whole of India except Jammu & Kashmir

3. Objectives of Service Tax
 Broadening the tax base
 Increasing the revenue … and
 Larger participation of citizens in the economic
development of the Nation

4. Levy (Section 66B of the Finance
Act, 1994
 is levied on the value of all services
provided in the Taxable territory, except
those services specified in the Negative
List
 The term Negative List represents those
services which are not liable for service
tax

5. Requisites (Liable for Service Tax)
 Is it a service ?
 Is it covered in the Negative List ?
 Value of taxable service…

6. Liability…who??
 Service Provider –remits and collects the tax
 In some cases—the recipient(REVERSE
CHARGE)…
 Certain cases– both
 Small Service Providers – upto ` 10 lakhs..
exempted

7. Sources of Service Tax Law

8. Service [Sec.65B(44)]
 Service means…
 any activity carried out by a person for another, for
consideration and includes a Declared Service

10. Consideration
 Consideration includes …
 any amount that is payable for the taxable services
provided or to be provided
Form … Monetary, Non-
Monetary or Deferred
consideration

15. Person [Sec.65B(37)]

16. Money and Actionable Claims