Franchisee services at Jammu

[satbir singhwahi]

We are located in Delhi and Franchisee are appointed in Jammu and consideration is received from there.

1. Whether this is exempted service ?

2. If yes , Then we reverse input by 7% ?

3. Whether sbc is to be paid in cash?

4. Where to show this in ST 3.

AI Summary

Franchisee Service Between Delhi and Jammu Exempt from Service Tax Under Place of Provision Rules 2012 A discussion forum addresses the applicability of service tax for a franchisee service between Delhi and Jammu. The primary question is whether the service is exempt from tax, given Jammu's status as a non-taxable territory. Participants debate the taxability under the Place of Provision of Services Rules, 2012, concluding that the service is not subject to service tax as it is provided to a non-taxable territory. The forum also discusses the non-applicability of the Reverse Charge Mechanism (RCM) and advises on how to reflect the transaction in the ST-3 return.