Function

• Section 65 of the Service Tax Act defines terminology used throughout the act. The definitions focus on defining taxable services and classifying them. Other terms defined by this section include banking and other financial services, credit rating agencies and many types of services.
  
  

Classification

• Within the confines of the Service Tax Act, a taxable service is one provided to a person by a number of providers. Included in the 114 defined taxable services are services rendered by an advertising agency (see sub clause 105e), air travel agency (sub clause 105l), beauty parlor (sub clause 105zq) or fashion designer (sub clause 105zv)
  
  

Multiple Classifications

• Occasionally, a service may be classified under two taxable service types. For a single service business, the definition that most specifically represents the service will be used. For businesses offering several different services, the definition that describes the essential character of the business will be used. If the service cannot be classified using either of these methods, the first definition listed that applies will be used.