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Service tax registration-multiple premises

(Guest)

An ad agency having 2 place of business, one in J&K and other in Delhi.. Has to apply for Service Tax Number. What should be the best option?1. Doing Centralised Billing and accounting frm J&K and do not get regd under service tax laws?or 2. Not doing Centralised Billing but having decentralized system and obtain Service Tax Number for Delhi Office?

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5 Replies

Ram kr. (Buisness) (883 Points)
Replied 02 May 2016

J&K is Non Taxable Territory. There is no requirement for Registration in J&K

(Guest)

Ram Kr. Sir, if we adopt decentralised mode and obtain Servc Tax Number for Delhi Office and then J&K office provides some services in Delhi and nearby regions, can deptt demand servc tax from delhi office since j&k office is providing services in delhi????

sahil (student) (127 Points)
Replied 04 May 2016

yes service tax liability will arise as it is a destination based tax

(Guest)

Normally when service provider is located in non taxable territory (J&K office) and service recipient in taxable territory then tax will be paid by recipient on RCM basis.. bt i want to know jst bcoz service provider has office in taxable territory also.. can dept demand tax on services provided by office located in non taxable territory but providing services in taxable territory (delhi) bcoz one office is in taxable territory (delhi)