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taxable services in india

119 Taxable Services in India

taxable services in india

Levy of service tax

1.1 As on 1st May, 2011, 119 services are taxable services in India. These taxable services are specified in Section 65(105) of the Finance Act,1994. Section 64 of the Finance Act, 1994, extends the levy of service tax to the whole of India, except the State of Jammu & Kashmir.

Generally, the liability to pay service tax has been placed on the ‘service provider’. However, in respect of the taxable services notified under Sec.68(2) of the Finance Act,1994, the service tax shall be paid by such person and in such manner as may be prescribed at the rate specified in Sec.66 of the Act and all the provisions of Chapter-V shall apply to such person as if he is the person liable for paying the service tax.

The following services have been notified under Sec.68(2) of Finance Act,1994:

A. the services,-

(i) in relation to telecommunication service;

(ii) in relation to general insurance business;

(iii) in relation to insurance auxiliary service by an insurance agent; and

(iv) in relation to transport of goods by road in a goods carriage, where the consignor or consignee of goods-

(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(b) any company established by or under the Companies Act, 1956 (1 of 1956);

(c) any corporation established by or under any law;

(d) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India;

(e) any co-operative society established by or under any law;

(f) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder; or

(g) anybody corporate established, or a partnership firm registered, by or under any

(v) In relation to Business Auxiliary Service of distribution of mutual fund by a mutual fund distributer or an agent, as the case may be;

(vi) in relation to sponsorship service provided to any body corporate or firm located in India;

Any taxable service provided or to be provided from a country other than India and received in India, under Sec.66a of the Finance Act,1994.

( Sec. 68(2) of Finance Act,1994, Notification 36/2004-S.T. dated 31.12.2004 as amended)

In the following situations, the liability to pay service tax is as follows :

in relation to [telecommunication service]

(a) the Director General of Posts and Telegraphs,

(b) the Chairman-cum-Managing Director, Mahanagar Telephone Nigam Ltd, Delhi, a company registered under the Companies Act

(c) any other person who has been granted a license by the Central Government.

in relation to general insurance business, the insurer or re-insurer, as the case may be, providing such service;
in relation to insurance auxiliary service by an insurance agent, any person carrying on the general insurance business [or the life insurance business, as the case may be,] in India;
in relation to any taxable service provided or to be provided by any person from a country other than India and received by any person in India under section 66A of the Act, the recipient of such service;
In relation to taxable service provided by a goods transport agency, where the consignor or consignee of goods is- any factory, any company, any corporation, any registered society, any co- operative society, any registered dealer of excisable goods , any body corporate or a partnership firm;
in relation to business auxiliary service of distribution of mutual fund by a mutual fund distributor or an agent, as the case be, the mutual fund or asset management company, as the case may be, receiving such services;
in relation to sponsorship service provided to any body corporate or firm located in India, the body corporate or, as the case may be the firm who receives such sponsorship service;

( Rule 2(d) of Service Tax Rules, 1994)

1.2 From 01.06.2007 to 23.02.2009, the Service tax was payable @ 12% of the ‘gross amount’ plus 2% Education Cess on service tax plus 1% Secondary Higher Education Cess on service tax i.e totaling to 12.36% ( in specific cases partial deductions are allowed, refer section 67 of the Finance Act) charged by the service provider for providing such taxable service. From 24.02.2009, vide Notification No.8/2009-ST dated 24.02.2009 the rate of service tax is 10% on gross value of the taxable service plus 2% Education Cess on the service tax amount and 1% Secondary Higher Education Cess on the service tax amount.

Example: Suppose the value of taxable service is Rs.100. Service tax @10% will be Rs.10 and Education Cess @2% of the Service Tax will be Rs.0.20 and Secondary & Higher Education Cess @1% of the service tax will be 0.10.

1.3 The Table below shows the category of services which are taxable with the date of introduction of such service. The table also shows the ‘accounting heads’ for each category service, for the purpose of payment of service tax:

Sr.No Service Category Date of
 Introduction
Accounting codes
Tax Collection Other Receipts
1 Advertising 01.11.1996 00440013 00440016
2 Air Travel Agent 01.07.1997 00440032 00440033
3 Airport Services 10.09.2004 00440258 00440259
4 Architect 16.10.1998 00440072 00440073
5 ATM Operations, Management or Maintenance 01.05.2006 00440346 00440347
6 Auctioneers’ service, other than auction of property under directions or orders of a count of or auction by Central Govt. 01.05.2006 00440370 00440371
7 Authorized Service Station 16.07.2001 00440181 00440182
8 Auxiliary to General Insurance 16.07.2001 00440169 00440170
9 Auxiliary to  Life Insurance 16.08.2002
10 Banking & Other Financial Services 16.07.2001 00440173 00440174
11 Beauty Parlor 16.08.2002 00440209 00440210
12 Broadcasting 16.07.2001 00440165 00440166
13 Business Auxiliary Service 01.07.2003 00440225 00440226
14 Business Exhibition Service 10.09.2004 00440254 00440255
15 Business Support Service 01.05.2006 00440366 00440367
16 Cable Operator 16.08.2002 00440217 00440218
17 Cargo Handling 16.08.2002 00440189 00440190
18 Chartered Accountant 16.10.1998 00440092 00440093
19 Cleaning Service 16.06.2005 00440318 00440319
20 Clearing & Forwarding Agent 16.07.1997 00440045 00440046
21 Clubs and Associations 16.06.2005 00440322 00440323
22 Commercial or Industrial Construction 10.09.2004 00440290 00440291
23 Commercial Training or Coaching 01.07.2003 00440229 00440230
24 Company Secretary 16.10.1998 00440100 00440101
25 Construction of Residential Complex 16.06.2005 00440334 00440335
26 Consulting Engineer 07.07.1997 00440057 00440058
27 Convention Centre 16.07.2001 00440133 00440134
28 Cost Accountant 16.10.1998 00440096 00440097
29 Courier Services 01.11.1996 00440014 00440018
30 Credit Card, Debit Card, Charge Card or other payment card related services 01.05.2006 00440394 00440395
31 Credit Rating Agency 16.10.1998 00440088 00440089
32 Custom House Agent 15.06.1997 00440026 00440027
33 Dredging 16.06.2005 00440310 00440311
34 Dry Cleaning 16.08.2002 00440221 00440222
35 Erection, Commissioning or Installation 01.07.2003 00440233 00440234
36 Event Management 16.08.2002 00440197 00440198
37 Fashion Designer 16.08.2002 00440213 00440214
38 Forward Contract Services 10.09.2004 00440282 00440283
39 Franchise Service 01.07.2003 00440237 00440238
40 Foreign Exchange Broker 01.07.2003 00440173 00440174
41 General Insurance 01.07.1994 00440005 00440006
42 Health Club & Fitness Centre 16.08.2002 00440205 00440206
43 Intellectual Property Service 10.09.2004 00440278 00440279
44 Interior Decorator 16.10.1998 00440076 00440077
45 Internet Caf 01.07.2003 00440241 00440242
46 Internet Telecommunication Service 01.05.2006 00440382 00440383
47 Life Insurance 16.08.2002 00440185 00440186
48 Mailing List Compilation and Mailing 16.06.2005 00440330 00440331
49 Management Consultant 01.07.1997 00440116 00440117
50 Maintenance or  Repair Service 01.07.2003 00440245 00440246
51 Mandap Keeper 16.10.1998 00440035 00440036
52 Manpower Recruitment or Supply  Agency 07.07.1997 00440060 00440061
53 Market Research Agency 16.10.1998 00440112 00440113
54 On-line Information & Database Access or Retrieval Service 16.07.2001 00440153 00440154
55 Opinion Poll Service 10.19.2004 00440274 00440275
56 Outdoor Caterer 10.09.2004 00440051 00440052
57 Packaging Service 16.06.2005 00440326 00440327
58 Pandal or Shamiana Services 10.09.2004 00440054 00440055
59 Photography 16.07.2001 00440129 00440130
60 Port Service ( Major Ports) 16.07.2001 00440177 00440178
61 Port Services( Other Ports) 01.07.2003
62 Public Relations Service 01.05.2006 00440374 00440375
63 Rail Travel Agent 16.08.2002 00440201 00440202
64 Real Estate Agent / Consultant 16.10.1998 00440104 00440105
65 Recovery Agent 01.05.2006 00440350 00440351
66 Registrar to an Issue 01.05.2006 00440338 00440339
67 Rent – a – Cab Operator 16.07.1997 00440048 00440049
68 Sale of space or time for  Advertisement, other than print media 01.05.2006 00440354 00440355
69 Scientific or Technical Consultancy 16.07.2001 00440125 00440126
70 Security Agency 16.10.1998 00440108 00440109
71 Share Transfer Agent 01.05.2006 00440342 00440343
72 Ship Management service 01.05.2006 00440378 00440379
73 Site Preparation 16.06.2005 00440306 00440307
74 Sound Recording 16.07.2001 00440161 00440162
75 Sponsorship service provided to any body corporate or firm, other than sponsorship of sports event 01.05.2006 00440358 00440359
76 Steamer Agent 15.06.1997 00440029 00440030
77 Stock Broker 01.07.1994 00440008 00440009
78 Storage & Warehousing 16.08.2002 00440193 00440194
79 Survey & Exploration of Minerals 10.09.2004 00440270 00440271
80 Survey and Map Making 16.06.2005 00440314 00440315
81 T.V. & radio Programme Production Services 10.09.2004 00440286 00440287
82 Technical Testing & Analysis 01.07.2003 00440249 00440250
83 Technical Inspection & Certification Agency 01.07.2003 00440249 00440250
84 Tour Operator 01.09.1997 00440063 00440064
85 Transport of goods by Air 10.09.2004 00440266 00440267
86 Transport of goods by Road 01.01.2005 00440262 00440263
87 Transport of goods in containers by rail {‘other than Indian railway’   omitted w.e.f. 01.09.2009} 01.05.2006 00440390 00440391
88 Transport of goods other than water, through Pipeline or other conduit 16.06.2005 00440302 00440303
89 Transport of passengers embarking on international journey by air, other than economy class passengers 01.05.2006 00440362 00440363
90 Transport of persons by cruise ship 01.05.2006 00440386 00440387
91 Travel Agent other than Air & Rail Travel 10.09.2004 00440294 00440295
92 Underwriter 16.10.1998 00440084 00440085
93 Video Tape Production 16.07.2001 00440157 00440158
94 Telecommunication 01.06.2007 00440398 00440399
95 Renting of immovable property 01.06.2007 00440406 00440407
96 Works contract 01.06.2007 00440410 00440411
97 Content Development & Supply 01.06.2007 00440414 0440415
98 Asset Management 01.06.2007 00440418 00440419
99 Mining Services( Oil & Gas) 01.06.2006 00440402 00440403
100 Design Services 01.06.2007 00440422 00440423
101 Information Technology Software services 16.05.2008 00440452 00440450
102 Investment Management for ULIP 16.05.2008 00440430 00440431
103 Recognized Stock Exchange 16.05.2008 00440434 00440435
104 Recognized Associations-Commodity Exchange Services 16.05.2008 00440438 00440439
105 Clearing & Processing House services 16.05.2008 00440442 00440443
106 Supply of Tangible Goods services 16.05.2008 00440445 00440447
107 Cosmetic or Plastic Surgery Services 01.09.2009 00440460 00440463
108 Transport of Coastal goods, Goods through National Waterways or Goods through Inland Waterways 01.09.2009 00440470 00440473
109 Legal Consultancy Services 01.09.2009 00440480 00440483
110 Promotion, marketing or organizing  of games of chance including lottery, bingo etc. services 01.07.2010 00440595 00440596
111 Health services undertaken by Hospitals or Medical establishments 01.07.2010 00440598 00440599
112 Maintenance of Medical Records services 01.07.2010 00440601 00440602
113 Promotion of Brand of Goods, Services etc. 01.07.2010 00440604 00440605
114 Services of Permitting Commercial Use or Exploitation of any event 01.07.2010 00440607 00440608
115 Electricity Exchange Services 01.07.2010 00440610 00440611
116 Copyright Services 01.07.2010 00440613 00440614
117 Services provided by Builder in relation to preferential location, internal/external development etc 01.07.2010 00440616 00440617
118 Services of Air-conditioned restaurants having license to service alcoholic beverages in relation to service of food or beverages. 1.5.2011 00441067 00441068
119 Services of providing of accommodation in hotels / inns/ cubs/ guest houses/ campsite for a continuous period of less than three months 1.5.2011 00441070 00441071

Note:

1. Accounting Code for ‘Education Cess’ is ‘00440298’ for all services.

2. Accounting Code for ‘Secondary & Higher Education Cess’ is ‘00440426’ for all services.

3. The sub-head ‘Other receipts’ is meant for interest, penalty on delayed payment of service tax.

 

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