27 August 2014
Today i booked a ticket from jammu to delhi and then jammu to katra why the service tax is charge by indian railway on both transaction.?? place of provision as per rule 11 is starting point which is non taxable territory (jammu)
WHY THE SERVICE TAX IS CHARGE BY INDIAN RAILWAY????
27 August 2014
Your contention is correct to the extend that as per Rule11 of POP Rules,place of provision in case of transporatation of passengers is the place where the passenger starts the journey i.e in the present case Jammu.Jammu is a non-taxable territory,this mean the services are provided from non-taxable territory.
As per my view ,Now if you refer to notification no.30/2012 serial No.10 which says that in respect service provided by a person located in a non-taxable territory,the service tax liabiity is to be discharged by service receiver under reverse charge .Therefore the railways has recovered the service tax from the passenger.
I would like other experts to share in their views.
But as per NOTIFICATION NO. 30/2012 SERIAL NO. 10 SERVICE TAX LIABILITY DISCHARGE UNDER REVERSE CHARGE. IN PRACTICAL CASE I THINK NO PASSENGER IS DEPOSITING SERVICE TAX ON BEHALF OF INDIAN RAILWAY INDIAN RAILWAY HIMSELF DEPOSITS SERVICE TAX TO CENTRAL GOVT. UNDER NORMAL CHARGE AND REVERSE CHARGE NOT APPLICABLE ON INDIAN RAILWAY . Under reverse charge service receiver deposit service tax to central govt so how we apply notification no. 30 on indian railway Correct me if i am wrong mam.
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