Information on Service Tax

Rate of Tax

The Rate of Service Tax on all the services under the Service Tax acts is 6%.

Taxable Person/Licensing

Any Taxable person, who carries on business of providing taxable service and on crossing the threshold limit if any, must apply for a license. The term “person” includes an individual, a firm, a society, an association, a company and every other juridical person. No fee is payable for the issuance of a license.

A complete list of Taxable Services is as follows:

Department Code

Taxable Services


Supplying MMT inside Hotel


Supplying MMT outside Hotel


Supplying room to stay / sleep


Corkage, towel charge & cover charge services


Supplying room for Meeting / Cultural performances / Fashion Shows


Health Service


Massage Service


Supplying Escort to Social and Couple Dance


Sport and Recreation/Picnic Service


Preparation of Insurance Policy


Telecommunication Service


Credit Card Service


Customs clearance of Goods/Commodity Services


Supplying automobile parking space


Speed Courier/Shipment Service


Transport Service


Security / Guard Service


Professional Services


Accounting Services


Juridical / Legislative Services


Engineering Professional Services


Architectural Services


Surveyor / Assessor / Valuator / Real Estate Agent Service


Consulting Services


Veterinary Services


Automobile lease/rental Services


Administrative services


Advertising Services


Golf game services


Corporate Protection and Security

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Tax on service apart from those stated above


Outdoor gathering / event services

Assessable value

Service Tax is calculated on Assessable Value. The Assessable Value is the difference of the Total Service charge and Expenses.


Expenses include those which incur while providing services i.e. postage, conveyance etc.