Constitutional Provision
Article 265 of the Constitution stresses that no service tax in India shall be charged or collected other than by the concerned authority. Schedule VII divides this subject into three different sections
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The article provides detailed information on the constitutional provision for service tax in India, the controlling authority, the various services under the purview of service tax and the administrative mechanism in India.
Service Tax in India
Constitutional Provision
Article 265 of the Constitution stresses that no service tax in India shall be charged or collected other than by the concerned authority. Schedule VII divides this subject into three different sections
An amendment (95th amendment) in 2003 was made to enable the Central government to decide the method of charging service tax and the means of collection of proceeds by the central government and state government. Subsequently a new article 268 A has been introduced for levy of service tax by Central government.
Creation Of DGST The department of Director General (Service Tax) was created in 1997 to handle the huge workload resulting due to the increasing importance of service tax. The Director General (Service Tax) is in charge of the department and his role and authority are:
The modus operandi with respect to service tax came into existence from 1st July 1994.Its applicability is to the entire nation other than Jammu and Kashmir. The following services were brought under the tax net in 1994-95:
The Finance Act (2) brought in addition the following services
The Finance act of 1997 and 1998 brought into the taxable bracket other service providers like
In 1998-99 twelve new services were introduced
In Budget 2002-2003 the following services were included in the tax net
In 2005-2006 the following services were brought under the tax net
Administrative Mechanism
Service Tax is controlled by the Central Excise Commissionerate who reports to the Central Board Of Excise and Customs, Department of Revenue, Ministry Of Finance. The distinctive feature of service tax is its dependence on collection of tax, mainly through voluntary compliance. To ensure the assessees and the general public have confidence in the service tax structure the following steps have been taken.
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