service tax in J&K

[Ankit Sharma]

Dear Friends,

I Have a doubt that when we provide services in the state of J&K . then at the time of filling the ST-3, we treat the transaction as Exempt Service or as a Export Service.

[DEV KUMAR KOTHARI]

If services are rendered in J & K, then the provisions of FA 1994 are not applicable because the provisions of Chapter V of the Finance Act 1994 do not extend to the State of Jammu and Kashmir. In such situation it is neither a case of exemption nor export of service. It is a case where the relevant provisions are not at all applicable.

The value of services rendered in J & K need not be included in total  of services to which the provisions apply and accounted for in a separate a/c. A disclosure in some  suitable  manner can be made. See the provisions of S. 64

64.  Extent, commencement and application

(1) This Chapter extends to the whole of India except the State of Jammu and Kashmir.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

(3) It shall apply to taxable services provided on or after the commencement this Chapter.

AI Summary

Service tax provisions under Finance Act 1994 don't apply to Jammu and Kashmir; disclose separately in ST-3 form. A query was raised regarding the treatment of service tax for services provided in Jammu and Kashmir when filing the ST-3 form. The response clarified that the provisions of the Finance Act 1994, specifically Chapter V, do not apply to Jammu and Kashmir. Therefore, services rendered in this state are neither considered exempt nor export services. The value of such services should not be included in the total services subject to these provisions and should be accounted for separately, with appropriate disclosure made.