In which financial year the ‘service tax’ was first time imposed in India?

1993-94
1994-95
1996-97
1998-99

The correct answer is (c) 1996-97.

Service tax is a tax levied on services provided in India. It was first imposed in the financial year 1996-97 at a rate of 5%. The rate of service tax has been increased over the years and is currently 18%.

Service tax is levied on a wide range of services, including banking, insurance, telecom, transportation, and entertainment. It is collected by the Central Board of Excise and Customs (CBEC) and is a major source of revenue for the government of India.

The following are the options for the question:

(a) 1993-94: This option is incorrect. Service tax was not imposed in the financial year 1993-94.
(b) 1994-95: This option is incorrect. Service tax was not imposed in the financial year 1994-95.
(c) 1996-97: This option is correct. Service tax was first imposed in the financial year 1996-97.
(d) 1998-99: This option is incorrect. Service tax was not imposed in the financial year 1998-99.

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