Question

Q. With reference to service tax in India, consider the following statements:

Which of the above given is/are correct?

• A.
  1 only
• B.
  1 and 2 only
• C.
  2 and 3 only
• D.
  1, 2 and 3

Answer 1

The correct option is B

1 and 2 only
Explanation:

Statement 1 is correct:
There was no provision of service tax in the original constitution hence, by the 95th Amendment Act, 2003 Article 270 was amended and Article 268(A) was inserted in the constitution.

Statement 2 is correct:
Service tax in India was first implemented in 1994-95. Initially only 3 services were covered. But prior to GST more than 120 services were covered under it. Its initially rate was 5% but prior to GST it was 15%.

Statement 3 is incorrect:
In the 7th schedule under union list section 92(c) in the name of taxation on services was also added through the 95th constitutional amendment act. Service tax is in the union list not in the concurrent list.