Service tax is an indirect tax levied by the Central Government on services provided in India except Jammu & Kashmir. It aims to broaden the tax base, increase revenue, and encourage citizen participation in the economy. Service tax applies to the value of all taxable services except those specified in the Negative List. To be liable, a service must be provided for consideration in the taxable territory and not be included in the Negative List. The service provider is responsible for remitting and collecting the tax, though in some cases the recipient or both parties are liable. Sources of service tax law include the Finance Act and section 65B definitions.

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