In India, Service Tax was first introduced in the year:

Correct option is C

The correct answer is (c) 1994.
Explanation:
· Service Tax was first introduced in India in 1994 under the recommendations of the Dr. Raja Chelliah Committee on tax reforms.
· The tax was initially imposed on only three services: telephone services, non-life insurance services, and services provided by stockbrokers.
· It was implemented through the Finance Act of 1994 and was set at a rate of 5%. 
Information Booster:
· Service Tax was later subsumed by the Goods and Services Tax (GST), which came into effect on July 1, 2017.
· The introduction of Service Tax aimed to widen the indirect tax base and generate revenue from the growing services sector.
· Over the years, the number of services under the tax net expanded significantly until it was replaced by GST.