As per sec 66 under chapter V of Finance Act 1994 Service Tax is leviable on all service mentioned under sec 65 of the Act

Last updated: 21 May 2012

Court :
Supreme Court of India

Brief :
Service Tax was introduced for the first time under Chapter V of the Finance Act, 1994. Section 66 of the Act was the charging section and it provided for the levy of service tax at the rate of five per cent of the value of the taxable services. “Taxable service” was defined in Section 65 to include only three services namely any service provided to an investor by a stockbroker, to a subscriber by the telegraph authority, and to a policy-holder by an insurer carrying on general insurance business. Section 68 required every person providing taxable service to collect the service tax at specified rates. Section 69 of the Finance Act, 1994 provided for registration of the persons responsible for collecting service tax. Sub-sections (2) and (5) indicated that it was the provider of the service who was responsible for collecting the tax and obliged to get registered.

Citation :
Rashtriya Ispat Nigam Limited … Appellant Versus M/s Dewan Chand Ram Saran …Respondent