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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.

 

  1. Tax Practical
  2. Practical Service Tax
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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