Service Tax was introduced in 1994 Budget for the first time and the levy therefore is still in its childhood. There is considerable lack of awareness about the tax and its ramifications both on part of public and the trade who constitute the assessees and among the departmental officers who administer it.
Experience gained over the last five years from the administration of Service Tax, inspections of the various Service Tax formations in the country, interaction with a number of trade bodies and other members of the public, threw up a large number of issues for which answers had to be found, within the parameters of the law. The same has been attempted.
The attempt is made to explain and clarify issues with regard to Service Tax so that any member of general public or an assessee is enabled to carry on with his work satisfactorily. The authority in respect of the above clarifications, however, lies in the legal provisions, referred to in relevant paragraphs.
The questions and answers have been arranged under two headings-General Issues and Service Specific Issues. This is to facilitate easier reference.
In cases of doubt and in matters needing further information/clarifications on Service Tax, Directorate of Service Tax (Mumbai)