Q. The service tax was introduced in which of the following year in India?

[A] 1989 – 90

[B] 1994 – 95

[C] 1999 – 2000

[D] 2005 – 06

Answer: B
Notes:

Explanation: The share of the services sector in the GDP of India has been going upward for the last decade.

  • The introduction of service tax in 1994–95 by the Government of India has started paying the government on its tax revenue front.
  • Introduced to redress the asymmentric and distortionary treatment of goods and services in the tax regime, the service tax has seen gradual expansion in the country.

Source: Ramesh Singh

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