Chartered Accountants and Architects, Levy On
All India Federation of Tax Practitioners & Ors. vs. Union of India, (2007) 7 SCC 527
Service tax was a value added tax or a general tax which applies to all commercial activities involving production of goods and provision of services.
Difference between service tax and sales tax and other taxes
Association of Leasing and Financial Service Companies vs. Union of India, (2011) 2 SCC 352
Service tax is a value added tax and destination based consumption tax i.e. levied on commercial activities, but it is not a charge on business, but on a consumer. Therefore, it is a tax on activity i.e. the value which is added or the value addition which is made by a person providing services whereas sales tax is a tax on sale of goods or things.
Composite Contract of Service and Sale
Bharat Sanchar Nigam Ltd. and Anr. vs. Union of India (UOI) and Ors., AIR 2006 SC 1383
Transaction involved in providing telephone connection may be a composite contract of service and sale and thus State can tax on sale element provided there is discernible sale and only to the extent relatable to such sale.