Constitutional & Legal provisions behind levy of Service Tax in India
The Central Government has imposed service tax in terms of residuary entry no. 97 in the Union list in accordance with provisions contained in Article 265 of the Constitution.
Levy and assessment
Service tax is levied on specified taxable services and responsibility of payment of the tax is cast on the service provider. System of self-assessment of Service Tax Returns by service tax assessees has been introduced w.e.f. 01.04.2001. The jurisdictional Superintendent of Central Excise is authorized to cross verify the correctness of self assessed returns. Tax returns are expected to be filed half yearly.
Central Excise offices are authorized to conduct surveys to bring the prospective service tax assessees under the tax net. Directorate of Service Tax at Mumbai over sees the activities at the field level for technical and policy level coordination.
Sections 64 to 96 of the Finance Act, 1994, as amended from time to time provide the legal basis for the levy and collection of Service Tax.
The provisions relating to Service Tax were brought into force with
The Finance Act (2) 1996 enlarged the scope of levy of Service Tax
on advertising agencies, courier agencies and radio pager services.
But tax on these services was made applicable from
The Finance Acts of subsequent years further extended the scope of service tax to cover a larger number of services. Following service providers are presently liable to pay service tax and services rendered by them.
Registration of Service Tax Provider & Allotment of Service Tax Code.
Jurisdiction of the six Central Excise Commissionerates in the Zone which are administering service tax, in the states of Delhi & Haryana is as follows :
Service providers may down load ST-1 & Annexure-II application form for registration from Web site of Central Board of Excise & Customs (http://www.cbec.gov.in] by clicking “Forms” on “Service Tax” sub page. Annexure-II form for allotment of service tax code is annexed hereunder and you can send the same duly filled in to the respective Service Tax Divisions as indicated above. In case you do not receive a response within 7 days of sending your applications please make inquiries with the respective helpline as follows:-
Provisions relating to Service Tax
Extent, commencement and application
This Chapter extends
to the whole of
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
(3) It shall apply to taxable services provided on or after the commencement of this Chapter.
In this Chapter, unless the context otherwise requires, -
(1) "actuary" has the meaning assigned to it in clause (1) of section 2 of the Insurance Act, 1938 (4 of1938);
(2) "advertisement" includes any notice, circular, label, wrapper, document, hoarding or any other audio or visual representation made by means of light, sound, smoke or gas;
(3) "advertising agency" means any commercial concern engaged in providing any service connected with the making. preparation, display or exhibition of advertisement and includes an advertising consultant;
(4) "air travel agent" means any person engaged in providing any service connected with the booking of passage for travel by air;
(5) "Appellate Tribunal" means the Customs, Excise and Gold (Control) Appellate Tribunal constituted under section 129 of the Customs Act, 1962 (52 of 1962);
(6) “architect" means any person w/rose name is, for the time being, entered in the register of architects maintained under section 23 of the Architects Act, 1972 (20 of 1972) and also includes any commercial concern engaged in any manner, whether directly or indirectly, in rendering services in the field of architecture;
(7) "assessee" means a person liable to pay the service tax and includes his agent;
(8) "authorised service station" means any service station, or centre, authorised. any motor vehicle manufacturer, to carry out any service or repair of motor car or two wheeled motor vehicle manufactured by such manufacturer;
(9) "banking" shall have the meaning assigned to it in clause (b) of section '5, OJ the Banking Regulation Act, 1949 (10 of 1949);
(10) "banking company" shall have the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934);
(11) "banking and other financial services" means the following services provided by a banking company or a financial institution including a non-banking financial company or any other body corporate, namely-
(i) financial leasing services including equipment leasing and hire purchase by a body corporate;
(ii) credit card services;
(iii) merchant banking services;
(iv) securities and foreign exchange (forex) braking;
(v) asset management including portfolio management, all forms of fund management, pension fund management, custodial, depository and trust services, but does not include cash management;
(vi) advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisitions and advice on corporate restructuring and strategy; and
(vii) provision and transfer of information and data processing;
(12) "Board" means the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963);
(13) "body corporate" shall have the meaning assigned to it in clause (7) of section' 2 of the Companies Act, 1956 (1 of 1956);
(14) "broadcasting" has the meaning assigned to it in clause (c) of section 2 of the Prasar Bharati (Broadcasting Corporation of India) Act, 1990 (25 of 1990) and also includes programme selection, scheduling or presentation of sound or visual matter on a radio or a television channel that is intended for public listening or viewing, as the case may be; and in the case of a broadcasting agency or organisation, having its head office situated in any place outside India, includes the activity of selling of time slots or obtaining sponsorships for broadcasting of any programme or collecting the broadcasting charges on behalf of the said agency or organisation, by its branch office or subsidiary or representative in India or any agent appointed in India or by any person who acts on its behalf in any manner;
(15) "broadcasting agency or organisation" means any agency or organization engaged in providing service in relation to broadcasting in any manner and in the case of a broadcasting agency or organisation, having its head office situated in any place outside India, includes its branch office or subsidiary or representative in India or any agent appointed in India or any person woo acts on its behalf in any manner, engaged in the- activity of selling of time slots for broadcasting of any programme or obtaining sponsorships for programme or collecting broadcasting charges on behalf of the said agency or organisation;
(16) "beauty treatment" means face and beauty treatment, cosmetic treatment, manicure, pedicure or counseling services on beauty, face care or make-up;
means any establishment providing beauty treatment
(18) "cab" means a motor cab or maxi cab;
shall have the meaning assigned to it in clause (a)