Q5.Explain the Service Tax Law in India and concept of negative list. Write about the exemptions and rebates in Service Tax Law. (Explanation of Service Tax Law in India 5 marks; explanation of concept of negative list 2marks; Explanation of exemptions and rebates in Service Tax Law 3 marks) 10marks
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:
the services
