Abstract:
The service sector is one of the most encompassing and growing sector today. It has crossed the boundaries of finance, insurance, transport, communication and tourism to include areas such as environment, education and counseling services to name a few. This has resulted in a world boom in respect of services. The growth of the service sector in the Indian Economy has been spectacular in the last 10-15 yrs. Whereas in advanced countries GDP growth has been propelled initially by manufacturing, in India it is the service sector that has led the growth. This phenomenal growth of the service sector to the Government exchequer has not been commensurate with it's growth. It is therefore introduction of service tax over the services is essential.
