(4) Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994 . Service tax is a tax levied by Central Government of India In India, taxpayers have to pay an education cess, which is of their income tax. This amount is added to the taxpayer's income tax liability. A tax levied on imports (and, sometimes, on exports) by the customs authorities of a country to raise state revenue, and/or to protect domestic industries from more efficient or predatory competitors from abroad. Customs duty is based generally on the value of goods or upon the weight, dimensions, or some other criteria of the item (such as the size of the engine, in case of automobiles). Excise Duty falls under the Central Government of India.