Wages on Service Tax applicable

If I am service tax registered person and I am receiving wages.is am liable to pay service tax?
Replies (1)

Service tax is not applicable on wages.

Key Points:

  • Abolition of Service Tax: Service tax was abolished in India on July 1, 2017, when it was replaced by the Goods and Services Tax (GST) regime. Any legacy queries regarding service tax refer to a period that is no longer active.

  • Employer-Employee Relationship: Under the Finance Act, 1994 (which governed service tax), services provided by an employee to an employer in the course of employment were specifically excluded from the definition of "service." Therefore, salary or wages received by an employee were never subject to service tax.

  • Current Tax Context: If you are an individual earning income in the form of salary or wages, this is governed under the Income Tax Act, not by indirect taxes like GST or the erstwhile service tax.


Summary: Service tax is no longer in effect and was never applicable to wages or salary, as these fall under an employer-employee relationship and are excluded from the definition of taxable services. Your income may be subject to Income Tax, but it is not liable for service tax (or GST).

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