Service Tax on Services provided in J & K state

[Anup Kumar Grover]

One of Delhi based company provided services in J & K, however, as per contractual basis, the invoices are raised to one Haryana based company and that Haryana based company issued invoices to J & K client. Or you may say that Delhi based company is sub contractor.

Q whether delhi based co shall charge service tax from haryana co.

Q. Haryana based co. not charging services tax from J & K co, being service receiver is in the non taxable territory. What will treatment be given to (if) service tax charged by delhi based co from Haryana Co and paid to Central Government A/c

Q Any other suggestion

[SHIVKUMAR SHARMA]

Dear Mr.Grover,

As per my View you have to charge service tax in the invoice which you have issued in the name of Haryana based Company.

SHIVKUMAR SHARMA

Hi,

service provider from Delhi, providing service to Haryana based company in respect of J&K, shall also not be liable to pay service tax for the same.

Thanks/Regards,

Gopinath Dey
 

AI Summary

Service tax on inter-state intermediary services: whether a domestic provider must tax an intermediary for services rendered in non taxable territory.
Whether a Delhi-based provider must account for Service Tax when services are performed in Jammu & Kashmir but invoiced to a Haryana intermediary, and how tax charged and remitted to the Central Government should be treated when the ultimate recipient is in a non taxable territory. Two advisory positions were given: one advises levying service tax on the Haryana invoice; the other advises no liability for the Delhi provider for services rendered in the non taxable territory.