The Service Tax, a tax on services like telephone services, stock brokers, health clubs, beauty parlors, dry cleaning services, etc., was introduced in _____________.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 1994.
- The Service Tax, introduced in 1994-95 in India, represented a major shift in the country's tax system by including services in addition to goods.
- This tax applied to a range of services such as telephone services, stock brokers, health clubs, beauty parlors, and dry cleaning services.
- It was aimed at broadening the tax base and generating revenue from the expanding service sector.
- The introduction of Service Tax marked a significant step in India's efforts to modernize and diversify its tax structure.