FRANCHICE SERVICES PROVIDED IN J&K, Service Tax

[satbir singh wahi]

A LTD CO HAS PROVIDED FRANCISEE SERVICES IN J& K , IT IS ALSO AVAILING CENVAT SO , IT IS LIABLE TO PAY SERVICE TAX ON SUCH SERVICES IN J& K . WHAT IS THE RATE 6 % OR 12%FOR PERIOD UPTO 30.06.12 AND AFTER.

Posts / Replies

[Nagabhushan Bhushan]

Dear Sir,

Position upto 30.06.2012:-

As per Section 64  the Finance Act 1994 the act applies to whole of India except Jammu and kashmir. Therefore any service provided to jammu and kashmir is not a taxable transaction under service tax. Therefore you are not liable to pay service tax on such transaction. 

As there is no liability of service tax as mentioned above so no question of availment of cenvat credit.

 

Position after 30.06.2012:-

The position continues as mentioned after the introduction of Negative list based taxation above because section 64 of Finance Act has not been deleted.