Why Service tax not implement from same date?

[Mridul Sethi]

Sir,

 

What is the reason that central excise duty implement for the next day of its budgets announcement & service tax implements later, most probably from 1st April.

 

Regards,

Mridul Sethi

AI Summary

Why Excise Duty Starts Immediately After Budget, But Service Tax Waits: Explained Under Provisional Collection of Taxes Act A query was raised about why central excise duty is implemented immediately after a budget announcement, while service tax is typically enforced later, often from April 1. The responses explained that the Provisional Collection of Taxes Act allows immediate implementation of excise and customs duty increases but does not apply to service tax. Service tax changes are introduced through the Finance Bill and become effective only after the bill is enacted into law. This process results in service tax provisions taking effect from specified dates or the date of enactment of the Finance Act.