Service tax

Definition of Service [Section 65B(44)]

Earlier, under the selective approach of taxation of services, the
word service was nowhere defined in the Financial Act,1994. In the
negative list approach of taxation of services, the definition of
service gains paramount importance. In order to determine where a
person is liable to pay service tax, the first question he needs to
answer is whether the activity undertaken by him come within the
ambit of definition of service. Consequently, section 65B (44)
defines the word service. For ease of understanding, the definition
of service tax may be divided into three sections:-
Meaning of service
Service means
(i) Any activity for consideration
(ii) Carried out by a person for another and
(iii) Includes a declared service.
APPLICABILITY:
Provision:
. 1) Service tax extends to the whole of India. Except state of
jammu&kasmir.
. 2) It shall come into force on such date as the central
government may by notification in the official Gazzette appoint.

. 3) It shall to taxable services Provided on or after the

commencement of service tax.

. SERVICETAXLAW
. Service tax was introduced in the year 1994 but till date,
there is no independent statute for levying service tax.
However , following sources provided statutory provisions
relating to service tax can be broadly grouped under the
following under the following categories:
. (a)FINANCEACT,1994
. The statutory provision relating to levy of service tax on
services were first promulgated through chapter V of the
finance Act, 1994. Since then Chapter V of the finance
Act, 1994 is working as the Act for the service tax levy.
Later, in the year 2003,the Finance Act 2003 inserted
 Chapter VA to deal with advance rulings. In the year 2004,
the provisions relating to levy of Education Cess on the
amount of
. service tax were made applicable through Chapter VI of
the Finance (No.2) Act,2004.
. (a)RULESONSERVICETAX
. Service 94 the Chapter V and section 96-1 of Chapter VA
of the Finance Act, 1994 grants power to the Central
Government for making rules for effective carrying out the
provisions of these Chapter. Using these power, the
Central Government has issued service Tax Rules 1994,
service Tax (Advance Ruling) Rules, 2003, service Tax
( Registration of Special Category of persons) Rules,2005,
Service Tax (Determination of Value) Rules,2006, point of
tax rules,2011 and Place of provision of Service Rules,
2012. Rules should be read
. with the statutory provisions contained in the Act. Rules
are made for carrying out