Please Help: service tax applicable in Jammu?
Posted Date : 01-Oct-2011 , 01:20:10 pm | Posted By: Rajiv Mittal
Category :
Service Tax | Answers :
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If a service tax provider of a region outside Jammu & Kashmir provides house keeping services to a bank in Jammu, will service tax be applicable on him? |
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Answers:
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 Answer by: Ashish Karundia |
| Dear Rajiv,
Service tax is a destination based consumption ta. In the instant case, service tax will not be applicable on services provided in Jammu.
Further, this view may further be substantiated by the letter of the Director General of Service Tax (F. No. V/DGST/03/GEN/INS/01/2004, dated 17-8-2004) which refers the Central Board of Excise and Customs (CBEC) Circular No. 56/5/2003, dated 25-4-2003 in which CBEC has clarified that, "Service Tax is a destination based consumption tax and the principle of consumption of services would determine the liability of Service Tax."
Hope this suffice the above.
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| Answer by: CA VIPIN GARG |
| No the service tax will not be applicable in the above case as the service tax is consumption based tax. It is totally irrelevent that what is location of the service rather what is important is the destination and consumption of services
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