In which year was service tax first introduced in India as a separate levy on specific services?

Introduction / Context:
This question belongs to the area of Indian economy and taxation, asking about the year in which service tax was first introduced in India. Service tax was an important step in the evolution of the indirect tax system and was later absorbed into the Goods and Services Tax framework. Competitive examinations often ask such historical tax related facts to test basic awareness of how the Indian tax structure has developed over time.

Given Data / Assumptions:

• The tax being discussed is service tax in India.
• The four year options are 1994, 1993, 1992, and 1991.
• Service tax was introduced through a Finance Act of the central government.
• Only one of these years corresponds to its actual introduction as a levy on selected services.

Concept / Approach:
The concept here is to remember the landmark year when India moved from a system focused mainly on goods to formally taxing services as well. Service tax was first imposed on a small number of services and later expanded to many more. Examinations expect candidates to know at least the starting year, even if they do not remember finer details like the initial rate or number of services covered.

Step-by-Step Solution:
Step 1: Recall that service tax in India was launched in the mid nineteen nineties, not in the early part of that decade.Step 2: Among the given options, 1991 and 1992 are too early and are more famous for economic liberalisation and other reforms rather than service tax.Step 3: 1993 is closer, but the widely accepted year for the introduction of service tax is the financial year associated with the Finance Act of 1994.Step 4: Therefore, select 1994 as the year when service tax was first introduced in India on a limited list of services.

Verification / Alternative check:
You can check this logically by connecting major tax reforms. Service tax preceded the introduction of Cenvat credit and later the move to a negative list based regime before being merged into GST in 2017. Reference materials on indirect taxes generally start the chronology with the Finance Act of 1994 as the starting point of service tax. This supports 1994 as the correct answer, not 1993 or earlier years.

Why Other Options Are Wrong:

• 1991: This year is associated with economic liberalisation measures and not the separate introduction of service tax.
• 1992: No major service tax legislation came into force in this year in India.
• 1993: Some preparatory steps and economic policy discussions occurred in the early nineteen nineties, but service tax as a legal levy started with the Finance Act of 1994.

Common Pitfalls:
Candidates often confuse the year of introduction of service tax with other economic milestones like the beginning of liberalisation in 1991 or other fiscal reform years. Another common error is to remember only the decade and then guess a year without cross checking with standard textbooks or coaching material. Understanding that service tax is a mid nineteen nineties reform helps fix 1994 firmly in memory.

Final Answer:
Service tax in India was first introduced as a separate levy on selected services in the year 1994.