Current Affairs - Bills and Acts - Discussion

The imposition of service tax on broadcasting services falls under the Finance Act of 1994, utilizing the residuary powers of Parliament outlined in Entry 97 of the Union List. This classification allows the Centre to tax broadcasting as a service, while states can simultaneously impose entertainment tax under their jurisdiction, specifically Entry 62 of the State List. The Supreme Court has upheld this dual taxation model, endorsing the aspect theory in taxation law. Recognizing the 1994 Act as the legal origin for service tax in this domain helps clarify the division of powers and resolves potential conflicts in fiscal policy enforcement.