25 October 2009

Legal Framework governing Service Tax


Law relating levy of Service-tax is laid down under Section 64 to Section 94 of finance Act, 1994. Applicability of service tax is from 1st July, 1994. There is no separate Act governing service tax, as there is for income-tax like Income-tax Act, 1961 and other Acts.

Service tax laws are applicable to whole of India, including the installations, structures and vessels in the Continental Shelf and Exclusive Economic Zone of India, except the State of Jammu & Kashmir.

The provisions of Service-tax are governed by following Acts and Rules.

  1. Service Tax Rules, 1994
  2. Service Tax (Advance Ruling) Rules, 2003
  3. CENVAT Credit Rules, 2004
  4. Export of Services Rules, 2005
  5. Service Tax (Registration of Special Category of Persons) Rules, 2005
  6. Authority for Advance Rulings (Central Excise, Customs & Service Tax) Procedure Regulations, 2005
  7. Taxation of Services (Provided from Outside India and Received in India) Rules, 2006
  8. Service Tax (Determination of Value) Rules, 2006
  9. Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007
  10. Service Tax (Publication of Names) Rules, 2008
  11. Service Tax (Provisional Attachment of Property) Rules, 2008

The Excise Department of the Central Government administers the Act.

The Government/CBEC (Central Board of Excise & Customs) has issued various i) notifications, ii) trade notices, iii) circulars and iv) orders, granting exemptions, abatements and giving clarifications on various issues.

For meanings of various terms, definitions of services and service providers etc, the Act refers to various other laws such as Architects Act, 1972, Motor Vehicles Act, 1988, Banking Regulation Act, 1949 etc. Words and expressions not defined in the Act but defined in Central Excise Act, 1944 or rules made there under, apply to Service Tax as well.

Index : my Blogs on Service Tax