SERVICE TAX ADMINISTRATION - GOODS vs. SERVICES –
THE NEVER ENDING DISPUTE
K. VAITHEESWARAN, Advocate
Sales Tax dates back to 1939 when the Madras General Sales Tax Act, 1939 was brought into force w.e.f. 01.10.1939. All States followed suit and sales taxis one of the major sources of revenue for States. The 46th Amendment to the Constitution brought in the concept of deemed sales in the year 1986.Transactions such as works contracts, lease, supply of food and beverages, etc.were brought within the ambit of deemed sales.Value Added Tax system was introduced in Haryana in 2003 and most of States in 2005. VAT has considerably improved the finances of States and remains as a tax on sale or purchase of goods levied by the State under Entry 54, List-II, Schedule-VII, Constitution of India.