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Service Tax applicability (J&K)

Ashok Asthana (Secretary) (669 Points)

25 February 2011  

Company X has office in Delhi and registered under service tax act. They have a branch office in Jammu. Jammu office is providing services to projects in J&K. permanent staff posted at site offices in J&K.

Is the Company liable to charge service tax on operations in J&K if the billing is done by their delhi office ?

What will be the situation if the billing is being done by their office in Jammu and the payment received is also being deposited in their Jammu bank account.

The service tax act says “This is applicable to whole of India (except J&K)


 11 Replies

Pankaj Arora (Learner) (3129 Points)
Replied 25 February 2011

 

No… you can not raise invoice including service tax from delhi to J & K. same answer will be for other situation J & K office also can not charge service tax.

SAMAR JEET SINGH (CA) (72 Points)
Replied 25 February 2011

Hi,

In my opinion

1. It is territorial jurisdiction which matters and not the provider of the services.

2. Service tax is not applicable to the state of Jammu Kashmir, thereby it means any services provided in the territorial jurisdiction of the Jammu and kashmir shall not be liable to service tax.

3. In your case Delhi service provider from outside the J&K provides services in J&k shall not charge service tax, vice versa if the service provider is located in J&K and provides services in Delhi will have to charge service tax.

CA Jaishree... (Chartered accountant) (156 Points)
Replied 25 February 2011

SAMARJEET

u r absolutely right....

CA Chintan Vyas (Chartered Accountant) (116 Points)
Replied 25 February 2011

Section 64 of Chapter V of Finance Act 1994 excludes the applicability of Service Tax to the State of Jammu & Kashmir, the Services provided within Jammu & Kashmir would be outside Service Tax. However, if any service from there to the clients anywhere in rest of the country, he would be liable to pay the Service Tax.

1 Like

Vikash Kharvar (Dy. Manager -F&A) (464 Points)
Replied 25 February 2011

No, the company X is not liable for charge Service Tax on there service.

It is so, becouse Service Tax is not applicable in J & K as per low.

U S Sharma (glidor@gmail.com) (21031 Points)
Replied 25 February 2011

Originally posted by : Ashok Asthana

Company X has office in Delhi and registered under service tax act. They have a branch office in Jammu. Jammu office is providing services to projects in J&K. permanent staff posted at site offices in J&K.

Is the Company liable to charge service tax on operations in J&K if the billing is done by their delhi office ?

What will be the situation if the billing is being done by their office in Jammu and the payment received is also being deposited in their Jammu bank account.

The service tax act says “This is applicable to whole of India (except J&K)

if the service is provided by J&K office and received in J&K, then mere biling by delhi office does not change the status, but you have to mention the service tax regn no of J&K in invoice, not of delhi. 

CA Bhuvnesh Kumar (Chartered Accountant) (69 Points)
Replied 26 February 2011

  • Service Tax is chargeable on sevices provided in J & K. because chargeability is dependent on situs of service provided.
  • Bills cannot be raised from delhi office for services provided by J & K office except centralised registeration and centralised billing is followed.

Om Prakash Regmi (Subject Matter Expert) (582 Points)
Replied 27 February 2011

No, The company is not liable to pay service tax

CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 28 February 2011

J&K operations are not liable to service tax irrespective place of billing.

Samir Ahsan (Director) (25 Points)
Replied 11 June 2015

I have query on Service Tax:

My company is based and registered in J&K. I want to buy Online DataBase Retrieval Login Access from a company which is outside J&K. Since Central Service TAX as per Chaper V of Finance Act 1994 64 doesn't apply to State of J&K so why should I pay Service Tax. Service Privider is telling me that they fall under Place of Provision of Services Rules, 2012 which i don't deny but since the Finance Act doen't apply to State of J&K and I as a service reciever fall under the non-teable juridiction need not to pay. 

Please help and let me know what si the rule. Do I have to pay Service Tax. Normally we don;t pay as we buy Licenses, Subscripttion renewals etc and we have exemption but don't understand whether Rule 9 applies or not.

 

Samir

 

VISHNU KUMAR (student) (187 Points)
Replied 30 May 2017

For eg. if a service provider registered in delhi provides services of Rs.100000/- in J&K, where should he show this amount in his ST-3 return ?


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