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Unit 7: Collection and Recovery of Service Tax and Assessment Procedure
In the Budget 2002-2003, the following services were added to the tax net with effect from Notes
16.08.2002:
42 Life Insurance services 16.08.2002
43 Insurance auxiliary services in relation to Life Insurance 16.08.2002
44 Cargo handling 16.08.2002
45 Storage and warehousing services 16.08.2002
46 Event Management 16.08.2002
47 Cable operators 16.08.2002
48 Beauty parlors 16.08.2002
49 Health and Fitness centers 16.08.2002
50 Fashion designer 16.08.2002
51 Rail travel agents. 16.08.2002
52 Dry cleaning services. 16.08.2002
Rate of service tax was 5% (till 13.05.2003) on the gross amount charged by the service provider.
In the Budget 2003-04, the following new services along with extension to the existing services
were added to the tax net with effect from 01.07.2003:
53 Commercial Training & Coaching centers 01.07.2003
54 Technical testing and analysis 01.07.2003
55 Technical inspection and certification service. 01.07.2003
56 Management, Maintenance or Repair services 01.07.2003
57 Erection, Commissioning and Installation Services 01.07.2003
58 Business Auxiliary Services 01.07.2003
59 Internet café 01.07.2003
60 Franchise Services 01.07.2003
61 Foreign Exchange Broker 01.07.2003
62 Port Services (Other or Minor Ports) 01.07.2003
{extension to port services}
The rate of Service Tax was 5% till 13.05.2003 and from 14.05.2003 the rate was increased to 8%
of the gross amount charged by the service provider on all the taxable services till 09.09.2004.
In the Budget 2004-05, 10 more services have been introduced in the service tax net along with
reintroduction of three existing services w.e.f 10.09.2004 as follows:
63 Out door Caterer’s service (re-introduced) 10.09.2004
64 Pandal or Shamiana service (re-introduced) 10.09.2004
65 Airport Services 10.09.2004
66 Transport of Goods by Air Services 10.09.2004
67 Business Exhibition Services 10.09.2004
68 Construction Services in relation to commercial or Industrial 10.09.2004
Building
Contd....
LOVELY PROFESSIONAL UNIVERSITY 113
