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|
BASIS FOR COMPARISON |
VAT |
SERVICE TAX |
|
Meaning |
Tax charged on the value addition to commodities is known as VAT. |
Tax charged on the services provided is known as Service Tax. |
|
Nature |
Multi point tax |
Single point tax |
|
Charged on |
Both on production and trading of goods. |
Services provided. |
|
Levied by |
State Government |
Central Government |
|
Statute |
Concerned State Act |
Finance Act, 1994 |
|
Introduced in the year |
2005 |
1994 |
|
Rate |
Variable, for different types of commodities |
Uniform for all services. |
|
Area |
Within the state |
All over the country subject to certain exception. |
