Indian railway pls reply

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2014 Sir today i booked a ticket from Jammu(Non taxable territory) to Delhi(Taxable territory) by rail in 1st AC coach why the railway charge service tax of ticket fare ???
It is a contradiction of
1. Place of provision rule 11
2.Negative list transportation of passenger

Annu Agarwal

Annu Agarwal (Expert)
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06 August 2014 Please note that the clause (o) of Negative List clearly says that service of transporation of passsengers in railways is exempt other than a first class or an air conditioned coach w.e. f 01.10.2012.So as you have booked a 1st a.c Coach,service tax shall be applied.

And as per Rule 11 of place of provision rules though service shall be levied at the place where journey begins,the place in this case being Jammu and Kashmir and as service tax is not levied in J&k the service tax shall be paid by service receiver i.e the customer .Notification No.30/2012

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Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2014 Annu mam,
My question is that
SP Indian railway
SR Me
Place of service Jammu and kashmir(where the journey embark)
but when i booked ticket on irctc service tax is normally charge
i wanted to know why the service tax is charged if journey start from NTT.

As per rule 11 it is start from non taxable territory hence not taxable

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Annu Agarwal

Annu Agarwal (Expert)
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06 August 2014 Please note that the service is a taxable service in your case.Secondly by place of provision we mean tht where the service is provided and not that who shall pay the service tax.As per Rule 11 of place of provisions rule,the service of transporation of passengers is provided in Jammu & kashmir which is a non-taxable Territory.Now a reference to the Serial No.10 of the notification No.30/2012 bringsout tht in respect of any TAXABLE SERVICE provided in a NON-TAXABLE TRRITORY the person liable to pay service tax is the person receiving such services.

Thus you can conclude that though the service is rendered in non-taxable territory it does not mean it s anon-taxable service too.

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2014 Thanks mam

But in rule 8 define where provider and recipient are located in taxable territory and services provided in non taxable territory then location of service receiver is consider for the purpose of service tax

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2014 According to notification no. 30/2012 service provider located in non taxable territory and receiver in taxable territory.

M confused whats the solution of my problem whether it is notification as u mention above or rule 8