Applicability of Service Tax in Jammu & Kashmir

This query is : Resolved

GURDEEP SINGH (Querist)
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22 May 2011 A Tour & Travel Company Engages providing Bus/Cab/Hotel Service to its customers at various location in all over india. Head office of Company situated at Jalandhar & Branch office at Panchkula.

Whether Hotel Booking of Customer at Panchkula office in Jammu & Kashmir Would attract Service Tax in Case of Tour operator Category.

Guest

Guest (Expert)

24 May 2011 I understand that Panchkula is in the State of Haryana and therefore booking of taxy/cab/hotels in J&K from Panchkula is a taxable service.

GURDEEP SINGH

GURDEEP SINGH (Querist)
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24 May 2011 Heartly Thankful to resolve my query. My Question is Service Tax doesn't extend to the state of Jammu & Kashmir so Service Provided in the territorial jurisdication of Jammu & Kashmir are not liable to Service Tax. The Location of the service provider or the service recipient doesn't Matter.
So In the above Case service provided in the State of Jammu & Kashmir by a service provider having office in Panckula(Haryana) will not be liable to service Tax.

Conclusion:- Service tax will not be attracted.

Is it right please help !

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U S Sharma

U S Sharma (Expert)
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26 May 2011 no

service is provided by the non J&K company, so his commission is chargable,

actual hotel does not charge any service tax, and the travel agent does not charge any service tax on hotel rent, but on his share of commission. remember that in this issue, abatement is not applicable.