<h1>Understanding Service Tax: Section 66B Criteria, Taxable Territory, and Exemptions Explained.</h1> The guidance note on service tax outlines the criteria for a service to be taxable under section 66B of the Act. A service is taxable if provided or agreed to be provided in a taxable territory and not listed in the negative list. The phrase 'agreed to be provided' includes services not yet delivered but contracted, making advances taxable. The point of taxation is determined by the issuance of an invoice or receipt of payment. Services in the taxable territory, excluding Jammu and Kashmir, are subject to tax unless exempted. Exemptions apply if the previous year's taxable services were below Rs.10 lakh or if covered by specific notifications.