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Sales tax is generally payable on who sales of any goods in the state and all over country under the tax laws of the appropriate state. A sales tax is a consumption tax charged at the point of purchase for certain goods and services. The tax is usually set as a percentage by the government charging the tax.
It is an indirect tax. Service tax is a tax on services provided. The provisions of service tax are contained in chapter V of the Finance Act, 1994 and administered by the Central Excise Department. The word ‘Service’ is not defined in Finance Act, 1994.
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