TaxTMI 
TaxTMI 
A LTD CO HAS PROVIDED FRANCISEE SERVICES IN J& K , IT IS ALSO AVAILING CENVAT SO , IT IS LIABLE TO PAY SERVICE TAX ON SUCH SERVICES IN J& K . WHAT IS THE RATE 6 % OR 12%FOR PERIOD UPTO 30.06.12 AND AFTER.
FRANCHICE SERVICES PROVIDED IN J&K
13 Nov 2012 
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Service Tax Exemption for services in Jammu and Kashmir continues where Section 64 excludes that territory from taxation.
Franchise services supplied in Jammu and Kashmir were not subject to service tax because Section 64 of the Finance Act, 1994 excluded that territory; accordingly, no service tax liability arose and no CENVAT credit could be availed. That territorial exclusion remained effective after the transition to negative list taxation because Section 64 was not deleted, so such services continued to fall outside the service tax charge and related CENVAT treatment absent legislative amendment. (AI Summary)
Franchise services supplied in Jammu and Kashmir were not subject to service tax because Section 64 of the Finance Act, 1994 excluded that territory; accordingly, no service tax liability arose and no CENVAT credit could be availed. That territorial exclusion remained effective after the transition to negative list taxation because Section 64 was not deleted, so such services continued to fall outside the service tax charge and related CENVAT treatment absent legislative amendment. (AI Summary)