What is mean by tax
A fee charged ("levied") by a government on a product, income, or activity. If tax is levied directly on personal or corporate income, then it is a direct tax. If tax is levied on the price of a good or service, then it is called an indirect tax. The purpose of taxation is to finance government expenditure. One of the most important uses of taxes is to finance public goods and services, such as street lighting and street cleaning. Since public goods and services do not allow a non-payer to be excluded, or allow exclusion by a consumer, there cannot be a market in the good or service, and so they need to be provided by the government or a quasi-government agency, which tend to finance themselves largely through taxes.
Service Tax is a form of indirect tax imposed on specified services
called "taxable services". Service tax cannot be levied on any service
which is not included in the list of taxable services. Over the past few
years, service tax been expanded to cover new services. The objective
behind levying service tax is to reduce the degree of intensity of
taxation on manufacturing and trade without forcing the government to
compromise on the revenue needs. The intention of the government is to
gradually increase the list of taxable services until most services fall
within the scope of service tax. For the purpose of levying service
tax, the value of any taxable service should be the gross amount charged
by the service provider for the service rendered by him.
on Aug 22, 2019