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Destination based tax

sachin saraogi (Student CA Final ) (38 Points)

10 March 2014

Why is service tax regarded as a destination based tax...

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3 Replies

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 10 March 2014

Dear sachine please refer to place of provision in service tax to clear your doubt.

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Sunil Kumar (Indirect Taxation ) (1246 Points)
Replied 10 March 2014

Not only the service tax but all indirect taxes are destination based taxes whether it is vat custom excise or service tax all the taxes follow the same concept due to which the export are exempted and imports are taxable...

Sunil Kumar (Indirect Taxation ) (1246 Points)
Replied 10 March 2014

Dear In replying to ur query The term destination means the goods or services where actually consumed. If we export the goods then importing country charge the custom duty to compensate the national taxes and vice versa ....