Service Tax is a indirect tax imposed on specified services (taxable services) provided by a service provider (Company, Individual, Firm etc.).
Service Tax was first brought into force with effect from 1 July 1994. All service providers in India, except those in the state of Jammu and Kashmir, are required to pay a Service Tax in India.
Initially only three services were brought under the net of Service Tax and the tax rate was 5%. Gradually more services came under the ambit of Service Tax.
In accordance with the Annual Budget 2015, the current Service Tax rate has been increased from 12.36% to 14%.