SERVICE TAX. INTRODUCTION: 1]Service tax is an indirect tax. 2]it is leived by the central government on certain services.

3]it was introduced in 1994-95,and which came in force w.e.f.1st july94 4]it is administerd by the centarl excise department in india. 5]service provider wis a person who is liable to pay service tax. 6]the palce or location of the service provider is not important,what is important is where the services are provided.the services provided at the following places are not chargeableto service tax ie SEZ J&K[JAMMU AND KASHMIR] PALCE OUTSIDE INDIA[FORGEIN COUNTRY] 7]Rate of service tax equals 10.3% [10% service tax+2%eucational tax+1%higher educational cess] 8]excemption from service tax a) if gross amount seed is less than 10000 then thesmall scale service proveder are exempted. b] no service tax is provided to UNO or any other international organization. c]no service tax to diplomatic mission. d]no service tax is payable if services are rendered to diplomat on public authority performing mandatory or statutory function in public interest. e]no service tax is payable for service provided to R&I. 9]there are 108 services which are recognized to be included under service tax,however the study is restricted only to 6 servises for our exam. 1.CHARTERED ACCOUNTA NT: This service became taxable with effect from 16th oct 1998 ,he is a person who is member of ICAI &is holding certificate of practice. Exempted services : Services related to teaching and placement.

Services relating to representation beforeany stautory body on behalf of the client. 2.BUSINESS AUXILLARY SERVICES: This service became taxable from 1st july 03 any person who provides services to the client in nature of promotion,marketing,advertising etc is liable to pay tax. Exemptions : A]any services relating to any agricultural product. B]any services for cutting and polishing of precious metals. C]services proveded by technology business incubators and science and technology enterpreunership. 3.COMMERCIAL COACHING AND TRAINING CENTRE: This service became taxable from 1st july 03.taxable services in this case means any service provided to any person by a commercial training and coaching centre.it includes institutes that trains student for competitive exams like CET,PMT etc.institutes conducting study courses and granting degrees in collaboration with foreign university and institutes giving postl coaching. Exemption A]coaching for recognized courses by recognized institution. B] coaching for competitive by recognized institutions. C]pre- school[1st -9th]coaching or training. D]home tutions. E]in house training by employers. F]training on behalf of ICAI. G]vocational or recreational training. H]while calculating service tax value of standard textbook should be excluded. 4.RENTING OF IMMOVABLE PROPERTY This service became taxable w.e.f.1st june07.renting of immovable propperty includes renting,letting or leasing of property for use in course of business and commerce.it includes use of property such as factory,office buliding,warehouse,theatre,exhibition hall etc. Exemptions: A]renting of immovable propperty by or to religious body,

B]renting of immovable property to an educational body[excluding coaching classes&commercial training.] C]renting of vacant land which was solely used for agriculture,farming,mining etc. D]renting of buliding used for residential purpose. E]if property tax is paid to local bodied ,then such amount shall be deducted. 5.MANDAP KEEPERS: This service became taxable w.e.f.1st july 97.mandap keeper is a person who is allowed temporary occupation of a mandap ie halls, hotals,stadium,open plot,gymkhana for a consideration of organising any offical ,socail or business function[not being shooting of films,film premiers,shows etc] Exemptions : When a mandap keeper also provides catering services like supply of food in addition to letting out of mandap. 6.WORKS CONTRACT: Works contract became taxable w.e.f.1st june07 works contract means contract carried out for the purposeof erection or installation of palnts ,machine,equipments etc.it also includes plumbing,fire proofing,water proofing etc however constructions of ports,railway stations,road transport terminal etc are not eligible for payment of service tax. Works contract is a composite scheme contract and the assessers can pay 4%of the total value of the contract under the scheme.