The Service Tax, a tax on services like telephone services, stock brokers, health clubs, beauty parlors, dry cleaning services, etc., was introduced in ____________.

Correct option is A

The correct answer is (a) 1994-95.
· The Service Tax in India was introduced in the financial year 1994-95. It was first levied on three services: telephone services, stock brokers, and general insurance services. Over time, the scope of the Service Tax expanded to include a wide range of services, becoming a significant source of revenue for the government.
Information Booster:
· Service Tax Introduction: Service Tax was introduced as part of the Finance Act, 1994. The initial rate was 5%, and it was applicable only to a select number of services.
· Expansion of Service Tax: Over the years, the number of services covered under Service Tax increased significantly. Eventually, it covered almost all services except those specifically exempted.
· Transition to GST: Service Tax was subsumed under the Goods and Services Tax (GST) in 2017, which combined various indirect taxes under a single regime.