It is a tax levied on the transaction of certain specified services by the Central Government under the Finance Act, 1994. It is an indirect tax, in which normally the service provider pays the tax and recovers the amount from the recipient of service.
Service Tax was first levied on General Insurance Services, Stock Broking and telephone and Pager services. The Central Excise Department administers the Service Tax Law.
Services covered under Service Tax:
101 types of services are covered under the service tax. As per the annual budget 2008-09, 4 more services are added to the present list. Click here for the list of Services Covered.