Service Tax

General | Act | Rules | Forms | Notifications | Circulars | Bank Codes for payment | E Payment | Know Your Service Tax Tariff | Trade Notice

Service Tax is a tax imposed by Government of India on services provided in India. The service provider collects the tax and pays the same to the government. It is charged on all services except the services covered in the negative list (Section 66d of Finance Act 1994) of services & services covered under Mega Exemption Notification (Notification No. 25/2012 ST dated 20.06.2012). The current rate is 12.36% on gross value of the services.

Service tax had been first levied at a rate of five per cent flat from 15 July 1994 till 13 May 2003, at the rate of 8% flat plus an education cess of 2% thereon w.e.f 10 September 2004 on services provided by service providers. The rate of service tax was enhanced to 12% by Finance Act, 2006 w.e.f 18.4.2006. Finance Act, 2007 has imposed a new secondary and higher education cess of one percent on the service tax w.e.f 11.5.2007, increasing the total education cess to three percent and a total levy of 12.36 percent. The revenue form the service tax to the Government of India have shown a steady rise since its inception in 1994. The total number of Taxable services have been increased since 1994. Accordingly, the tax collections have grown substantially. However, from 1 July 2012 the concept of taxation on services was changed from a ‘Selected service approach’ to a 'Negative List regime'. This changed the taxation system of services from tax on some Selected services to tax being levied on the every service other than services mentioned in Negative list.

Dhanbad Commissionerate (earlier Dhanbad Division) was carved out from erstwhile Ranchi Commissionerate which came into existence with w.e.f. 15.10.2014. Revenue collection for last five years of Dhanbad Commisssionerate is as below :



Revenue realized
Year PLA CENVAT
2010-11 78.66 24.40
2011-12 110.83 26.64
2012-13 153.86 28.10
2013-14 260.87 19.79
2014-15 205.37 22.81