Page 115 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Indirect Tax Laws

Notes which service is provided or to be provided; date on which invoice is issued; and date of receipt
of payment for a taxable service.

Did u know? The Centre had, in Budget 2011-12, announced a shift in the basis of collection
of service tax from receipt basis to an accrual basis with effect from April 1.
7.1 Levy and Assessment

Service tax is levied on specified services and the responsibility of payment of the tax is generally
cast on the service provider but for few exceptions. 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. These tax returns have to be filed half yearly.
The Central Excise Officers are authorized to conduct surveys to bring the prospective service
tax assessees under the tax net. Directorate General of Service Tax at Mumbai oversees the
activities at the field level for technical and policy level coordination.

7.2 Legal Provisions

st
The provisions relating to Service Tax were brought into force with effect from 1 July 1994. It
extends to the whole of India except the state of Jammu & Kashmir. The chronological list of
taxable services with date of their introduction as on 1.5.2011 is given below:

The following services were brought under the tax net in the year 1994-95:
1 Telephone 01.07.1994
{This service has been de-notified and grouped as
‘Telecommunication Services’ w.e.f. 01.06.2007 vide Notfn.
.23/07 ST dated 22.05.07 and Sec.135 of Finance Act,2007 (22 of
2007)}

2 Stock broker 01.07.1994
3 General Insurance 01.07.1994

Rate of service tax was 5% adv.
The Finance (No. 2) Act 1996 enlarged the scope of levy of Service Tax covering three more
services viz.,

4 Advertising 01.11.1996
agencies

5 Courier 01.11.1996
agencies
6 Radio pager 01.07.1994
services. {This service has been de-notified and grouped as
‘Telecommunication Services w.e.f. 01.06.2007 vide Notfn. No.23/07
ST dated 22.05.07 and Sec.135 of Finance Act, 2007 (22 of 2007)}

Rate of service tax was 5%.

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