Service Tax Levy: Section 66B Imposes 14% Tax on All Services Provided in Taxable Territory Unless in Negative List

Section 66B of the Finance Act, 1994 establishes a service tax levy at the rate of fourteen percent on the value of all services provided or agreed to be provided in the taxable territory by one person to another, except those specified in the negative list. The tax is collected as prescribed. This provision was inserted by the Finance Act, 2012 effective from July 1, 2012. The tax rate was increased from twelve to fourteen percent through the Finance Act, 2015, effective June 1, 2015. An explanation regarding references to section 66 was later omitted by the Finance Act, 2013.