Services Subject To Tax

The provisions relating to Service Tax were brought into force with effect from 1st July 1994. It extends to whole of India except the state of Jammu & Kashmir. The services, brought under the tax net are:

Since 1994-95

1. Telephone
2. Stockbroker
3. General Insurance

   Since 1996

4. Advertising agencies,
5. Courier agencies
6. Radio pager services.
7. Consulting engineers (7th July, 1997)
8. Custom house agents (15th June, 1997)
9. Steamer agents (15th June, 1997)
10. Clearing & forwarding agents (16th July, 1997)
11. Air travel agents (1st July, 1997)
12. Tour operators (exempted upto 31.3.2000 Notification No.52/98, 8th July, 1998, reintroduced w.e.f. 1.4.2000)
13. Rent-a-Cab Operators (exempted upto 31.3.2000 Vide Notification No.3/99 Dt.28.2.99, reintroduced w.e.f. 1.4.2000)
14. Manpower recruitment Agency (1st July, 1997)
15. Mandap Keepers (1st July, 1997)

    Since1998.

16. Architects
17. Interior Decorators
18. Management Consultants
19. Practicing Chartered Accountants
20. Practicing Company Secretaries
21. Practicing Cost Accountants
22. Real Estates Agents/Consultants
23. Credit Rating Agencies
24. Private Security Agencies
25. Market Research Agencies
26. Underwriters Agencies

    Since 2001.

27. Scientific and technical consultancy services
28. Photography
29. Convention
30. Telegraph
31. Telex
32. Facsimile (fax)
33. Online information and database access or retrieval
34. Video-tape production
35. Sound recording
36. Broadcasting
37. Insurance auxiliary activity
38. Banking and other financial services
39. Port
40. Authorised Service Stations
41. Leased circuits Services

    Since 2002.

42. Auxiliary services to life insurance
43. Cargo handling
44. Storage and warehousing services
45. Event Management
46. Cable operators
47. Beauty parlours
48. Health and fitness centres
49. Fashion designer
50. Rail travel agents.
51. Dry cleaning services.

    Since 2003.

52. Commercial vocational institute, coaching centres and private tutorials
53. Technical testing and analysis (excluding health & diagnostic testing) technical inspection and certification service.
54. Maintenance & repair services
55. Commission and Installation Services
56. Business auxiliary services, namely business promotion and Support services (excluding on information technology services)
57. Internet cafe
58. Franchise Services
59. Foreign Exchange broking services
60. Maxicab repair services
61. Minor ports (other than major ports)

The Service Tax is leviable on the 'gross amount' charged by the service provider from the client, from the dates as notified and indicated above.

The rate of Service Tax has also been increased from 5% to 8% on all the taxable services w.e.f. 14.5.2003.