Service tax
This query is : Resolved
16 February 2016
I have got a bill of courier exp amounting to Rs.13025 on which service tax @ 12.5% amounting to Rs.1628.The total bill amounts to Rs.14653.My question is whether I have to pay the whole amount including service tax to courier co.as the service tax is not applicable in J&K?
16 February 2016
iF SERVICE TAX IS APPLICABLE IN J&K ,THEN ON WHAT RATE AND WHAT SERVICES?
16 February 2016
Yes you have to pay..
24 July 2025
Your question revolves around the applicability of Service Tax in Jammu & Kashmir (J&K) — which, prior to GST, had a special exemption status under the Service Tax law.
✅ Key Legal Provision:
Under Section 64(1) of the Finance Act, 1994 (Service Tax Law):
"This Chapter extends to the whole of India except the State of Jammu and Kashmir."
🔹 Implication:
**Service tax was not applicable on services provided in or consumed within J&K.
If a courier service was provided and consumed entirely in J&K, then:
No service tax should be applicable on that transaction.
You should not be charged service tax by the courier company.
🔎 Now, based on your scenario:
Particular Details
Courier bill amount (excl. tax) ₹13,025
Service tax charged @ 12.5% ₹1,628
Total amount ₹14,653
Place of consumption/service Jammu & Kashmir
Tax Applicability Not applicable, courier co. should not charge it.
❗ What to Do:
Clarify with the courier company that service tax should not be charged if both origin and destination are in J&K.
Ask them for a corrected invoice excluding the service tax.
If any part of the service is outside J&K, they may claim service tax is applicable — then Place of Provision Rules (POPS), 2012 come into play.
📌 Summary:
❌ No service tax is payable if the courier service is entirely within J&K.
✅ You should not pay the ₹1,628 service tax unless part of the service was provided outside J&K.
✅ Key Legal Provision:
Under Section 64(1) of the Finance Act, 1994 (Service Tax Law):
"This Chapter extends to the whole of India except the State of Jammu and Kashmir."
🔹 Implication:
**Service tax was not applicable on services provided in or consumed within J&K.
If a courier service was provided and consumed entirely in J&K, then:
No service tax should be applicable on that transaction.
You should not be charged service tax by the courier company.
🔎 Now, based on your scenario:
Particular Details
Courier bill amount (excl. tax) ₹13,025
Service tax charged @ 12.5% ₹1,628
Total amount ₹14,653
Place of consumption/service Jammu & Kashmir
Tax Applicability Not applicable, courier co. should not charge it.
❗ What to Do:
Clarify with the courier company that service tax should not be charged if both origin and destination are in J&K.
Ask them for a corrected invoice excluding the service tax.
If any part of the service is outside J&K, they may claim service tax is applicable — then Place of Provision Rules (POPS), 2012 come into play.
📌 Summary:
❌ No service tax is payable if the courier service is entirely within J&K.
✅ You should not pay the ₹1,628 service tax unless part of the service was provided outside J&K.
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