Why is there no service tax act in India unlike other acts such as the Central Excise Act, Customs Act, etc?
Okay lets begin with travelling way back in 1994 when the Service tax was first introduced. 1.Service tax was recommended by the Chilliah committee and was announced in the Finance act 1994 by Dr Manmohan Singh(Finance minister back then). 2.As per the Indian constitution, Entry 97(Residuary list) gives power to the Government to levy any kind of tax which is genuine and necessary. With the help of this entry the Service tax was introduced in 1994. 3.I am sure the government was looking forward to create a Service tax act which I assume because the parliament amended the constitution way back in 2003 enabling Entry 92(c) to charge service tax which hasn't been used to levy the service tax due to the absense of an exclusive Act. Consequently service tax is still being collected under the power of Entry 97 since the Finance act '94 had been passed under it. 4. Now since there is going to be no service tax, or for that matter any indirect tax in place of which the GST has been proposed, the Service tax Act will hence never be made. Hope that helped :)