TaxTMI 
TaxTMI 
Chargeability of Service Tax
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....o. 92C is appearing as under: "92C Taxes on services" The above entry has been inserted by the Constitution (Eighty-eighth Amendment) Act, 2003. Residuary power [since the Constitution (Eighty-eighth Amendment) Act, 2003. yet to be notified] Before this, the power to levy service has been exercised by the Central Government of India under the residuary entry no. 97 of the List I (called as union list) of the Seventh Schedule read with article 246 of the Constitution of India. Entry No. 97 is appearing as under: "97 Any other matter not enumerated in List II or List III including any tax mentioned in either of those Lists" ========== B. Incidence of Service Tax In each taxing enactment there happens to be ....
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....tory" means the territory to which the provisions of this Chapter apply; Taxable territory means the whole of India excluding the State of Jammu & Kashmir. The word "service" is defined in clause (44) of the section 65B ========== C. Applicability of Provision of Service Tax in the State of Jammu and Kashmir The provisions of service tax are not applicable in the state of Jammu & Kashmir. See section 64(1) of the Chapter V of the Finance Act, 1994 which reads as under: This chapter extends to the whole of India except the State of Jammu and Kashmir. Why the provision of service tax are not applicable in the state of Jammu & Kashmir? Article 370 of the Constitution of India restricts the power of Parliament to make laws for....
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....u & Kashmir, there cannot be any incidence of tax on such service. Position on or after 1.7.2012 While introducing negative list, legislature has introduced concept of taxable territory. The scope of taxable territory is whole of India except Jammu and Kashmir. Any service which is deemed to be provided or to be provided within the taxable territory would be liable to service tax and where service provider is located outside taxable territory, recipient is liable to tax under reverse charge scheme. DEFINITION: Sec 65B (27) "India" means,-- (a) the territory of the Union as referred to in clauses (2) and (3) of article 1 of the Constitution; (b) its territorial waters, continental shelf, exclusive economic zone or any othe....