In which year service tax was introduced in India?
Show answer & explanation
Correct answer: B
Explanation
Correct Answer:
Option 2: 1994
Explanation:
Service Tax was introduced in India in the year 1994. Initially, it was levied on only a few selected services, but over time, its scope was expanded. It became a significant source of government revenue. Its necessity grew alongside the expansion of the service sector. Later, following the implementation of the Goods and Services Tax (GST) in 2017, Service Tax was abolished and subsumed into the GST framework.
Additional Facts:
Option 1: 1991 marks the year of economic reforms.
Option 2: Correct Answer.
Option 3: 2005 is incorrect.
Option 4: 2008 is incorrect.
Potential Questions for Upcoming Exams:
Question: When was GST implemented?
Answer: 2017
Question: What is the full form of GST?
Answer: Goods and Services Tax
Question: What is an Indirect Tax?
Answer: A tax levied on consumption.
Question: What is VAT?
Answer: Value Added Tax