Taxability of Services

[CA AJAY KUMAR AGRAWAL]

Kindly share your views:-

1. A Service Provider located in J&K & provides Taxable to persons located in Taxable territory. In such case who has to deposit Service Tax & how ?

2. A Service Provider located in Taxable territory (other than J&K) & provides Taxable services in J&K. In such case who has to deposit service tax & how?

AI Summary

Reverse charge mechanism applies where provider is in J&K; provider collects service tax when located in taxable territory supplying into J&K.
When a service provider is located in J&K and the recipient is in the taxable territory, the recipient is said to be liable under the reverse charge mechanism; when the provider is located in the taxable territory and supplies services into J&K, practitioners advise the provider is liable to collect and remit service tax and may charge tax on invoices, with differing views on calculation of the payable amount.