Service Tax is an indirect tax levied on certain services provided by certain categories of persons including companies ,association of person, body of individuals etc., Today services cover wide range of activities such as hospitality, banking, insurance, management, communication, administration, entertainment, research and development forming part of retailing sector.
In the contemporary world, development of service sector has become synonyms with the advancement of the economy.
Rate of Service Tax
The Central board of excise and customs has been entrusted with the task of administration of service tax.  Service tax is charged @15 % plus education cess @2% and SHEC( Secondary and higher education cess) @ 1%. Education cess and SHEC depends on the nature of the tax imposed.