Clarification regarding applicability of service tax on law firms under the category of "business support service" - regarding - Service Tax - F.No. 137/56/2007-CX.4

Clarification regarding applicability of service tax on law firms under the category of "business support service" - regarding F.No. 137/56/2007-CX.4 Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs Dated : November 16, 2007 Subject : Clarification regarding applicability of service tax on law firms under the category of "business support service" - regarding. Please refers to your letter F. No. IV(16)Hqrs/Tech/720/S.T./06 dated 12.03.2007 on the above subject. 2. The mater has been examined in consultation with the Ministry of Law. The opinion of the Law Ministry is as follows,- "Chapter V of the Finance Act, 1994 extends to the whole of India except the State of J K. Therefore, services provided within the territorial limits of the State of J K only are excluded from the purview of the levy of service tax. 3.1 Sub-section (1) of section 68 of the said Act provides that every person providing taxable service to any person shall pay service tax at the rates specified u/s. 66 in such manner and within such period as may be prescribed. It will thus be seen that the incidence of service tax is attracted with reference to the place where the service is provided. 3.2 In the case under consideration, the object of service may be in the State of J K but the service provider as well person receiving the service are outside the State of J K. Therefore, provisions of Chapter V are attracted. 4. Appropriate action may accordingly be taken in the matter. (Gautam Bhattacharya) Commissioner (ST) Central Board of Excise Customs