Railway in jammu


This query is : Resolved 

(Querist)
04 September 2014 WHY THE INDIAN RAILWAY CHARGE SERVICE TAX IF I BOOKED A TICKET FROM JAMMU TO DELHI ????

04 September 2014 cos as per place of provision delhi is in taxable territory

karan sharma (Querist)
04 September 2014 Thanks for your reply sir
but In case of passenger transportation rule 11 of place of provision said that where the passenger start his journey .
1. Here the starting point is jammu which is non taxable territory .
Clear me if i am wrong

karan sharma (Querist)
04 September 2014 EVEN WHEN I BOOKED TICKET ON IRCTC FROM JAMMU TO KATRA BY RAILWAY THEN SERVICE TAX IS NORMALLY CHARGE BY INDIAN RAILWAY AFTER 70% ABATEMENT?

04 September 2014 cos if starting point is in non taxable territory then if end point is in taxable territory then service tax is applicable

karan sharma (Querist)
04 September 2014 Which section or rule i will read for more clarification on this topic?

karan sharma (Querist)
04 September 2014 but the indian railway follow same procedure in case of when i booked ticket from jammu to
katra(non taxable territory)

19 July 2025 Place of provision rule says journey start = place of service provision.
Jammu is non-taxable, so theoretically no tax.
Practically, because journey ends in taxable territory, Indian Railways charges service tax.
70% abatement means you pay service tax only on 30% of ticket fare.


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