Question

Service tax was initially started with _______ tax rate.

• A. 10%
• B. 12%
• C. 16%
• D. 5%

Answer 1

The correct option is D 5%

Service tax was introduced in 1994 by the finance minister Dr. Manmohan singh in which he emphasized the need for service tax.

Service tax is the tax levied on the service provided by the seller to customer and is borne by the customer.

The rate at which it was initially started with was 5%.