SERVICE TAX CHARGE BY J & K BANK-JAMMU ON ISSUE OF CHEQUE BOOK.

[Guest]

If service tax  not applicable in jammu & kashmir than jammu & kashmir bank charge me a service tax on issueing of cheque book.if service tax applicable in jammu & kashmir than pls let me know in which services services tax applicable in jammu & kashmir

[YP SOOD]

As per section 64 below Chapter V of the Finance Act, 1994(Charging statute), the provisions of Service tax extend to the whole of India except the State of Jammu and Kashmir. As such no ST in any of the services is leviable in the State of Jammu and Kashmir.

[YAGAY andSUN]

Bank can't charge service tax on the services provided since service tax is not applicable in J&k.

AI Summary

Service tax non-applicability in Jammu and Kashmir prevents banks from charging tax on cheque book issuance. Service tax does not extend to the State of Jammu and Kashmir under the territorial charging provision; consequently services provided within that State, including bank issuance of cheque books, are not subject to service tax and banks operating there may not levy such tax on customers.