TaxTMI 
TaxTMI 
i am registered with service tax department. I am entering into a contract with a government agency having head office in Delhi. The service contract is to be signed in Srinagar (J&K). The service is to be provide in J&K. The payment for the said contract has to be made from J&K. Do i need to charge service tax on this service or am i exempt from this tax as there is no service tax in J&K
Service tax liability
15 Oct 2015 
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Place of Provision of Service determines tax liability; services to a recipient in Jammu and Kashmir fall outside central service tax.
Place of provision governs service tax liability: when the recipient of services is located in Jammu and Kashmir, the Place of Provision of Service Rules make that State the taxable location and the Finance Act, 1994's service tax levy does not apply there; contractual statements cannot displace the statutory territorial rule and liability depends on the location of the recipient and the taxable character of each supply. (AI Summary)
Place of provision governs service tax liability: when the recipient of services is located in Jammu and Kashmir, the Place of Provision of Service Rules make that State the taxable location and the Finance Act, 1994's service tax levy does not apply there; contractual statements cannot displace the statutory territorial rule and liability depends on the location of the recipient and the taxable character of each supply. (AI Summary)