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QUESTION
Describe the various sources that provide statutory provisions relating to service tax.
View AnswerSources of service tax law
Finance Act 1994
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Various Service tax Rules
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Notifications of Service tax
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Circulars issued by CBEC
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Orders on Service tax
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Trade Notices
Finance Act 1994
There is no specific law of service tax like Service tax Act.
Every year,budget is passed in Finance Act
In Finance Act of 1994,service tax was first introduced, Hence, primary law applicable is
Finance Act,1994 (there is no separate Service tax act)
Service tax Rules
In Finance Act, power has been given to Central Government. Such rules are also to be followed
For example :- Point of taxation rules
Notifications of Service tax
Notification means scheme of government
Central government, time to time, issue notification, like exemption notifications and abatement notifications ( which we will study later in detail)
Circulars or Office Letters (Instructions) on service tax:
These are issued by CBEC(Central Board of Excise and Customs) to its officers to explain different tax concepts.These are binding on Department and not on assessees, however assessee also follow them for better compliance and to avoid disagreement with department.
Orders on service tax:
These are issued by both Central Government as well as CBEC.
orders have been issued by the CBEC, from time to time, to define jurisdiction of Central Excise Officers for the purposes of service tax.
Trade Notices on service tax:
Trade Notices are issued by the Central Excise/Service Tax Commissionerates to various trade associations. These trade associations intimate these to the tax payer. These trade notices give clarification on various matters
Q2
Which committee recommended the introduction of service tax?
View AnswerDr. Raja Chelliah Committee on Tax Reforms
Q3
Who has the power to levy service tax – Union or States? Discuss.
View Answerit is imposed by Central Government
But in Jammu and Kashmir,it is imposed by State Government
Q4
Which Entry of the Union List of the Constitution, grants the authority to levy service tax?
View AnswerInitially there was no specific entry in the Union List for levying service tax.
Service tax was levied by the Central Government by drawing power from entry 97 of the Union List.
As per Entry 97 Central Government has power to make law on any residuary subject which is not covered in any other list
“97 - Any other matter not enumerated in List II or List III including any tax not mentioned in either of those Lists.”
