Is service tax applicable on non taxable territory ???

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Natasha Mourya (Querist)
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06 January 2015 As I know service tax is not applicable on non taxable territory like Kashmir & Out of India.
Point no 1. Service provider is from Jammu, service receiver is from Nagpur. is service applicable or not?

Point no 2. Service provider is from Nagpur & service received is from Jammu, is service tax applicable?

Point no.3 Service provider is from Jammu & service receiver is from Mumbai but service providing place is Delhi, is service tax applicable?

Guest

Guest (Expert)

06 January 2015 Service tax is the destination based tax..Place of provisions (POP)Rules are incorporated in the Service tax to know the applicability..Generally as per Rule-3 pop is the place of service receiver..If as per these rules the POP comes to be a nontaxable territory then service tax is not levied.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 January 2015 Place of provision generally.- The place of provision of a service shall be the location of the recipient of service:

Point 1. service tax applicable.
Point 2. service tax not applicable.
Point.3. service tax applicable as service provided in taxable territory.

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Natasha Mourya

Natasha Mourya (Querist)
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06 January 2015 Thanks a lot seetharaman......