Applicability of Service Tax on immoveable property outside Jammu and Kashmir
Mr X residing in J&K received service of Mr Y, an architecture, who resides in J&K in relation to his immovable property located in Delhi. Is service tax chargeable on service provided by Mr Y to Mr X ? Please answer in detail with relevant notification.
Service Tax Act is applicable to whole India except Jammu and Kashmir. IF service is received in J&K then service tax is not chargeable.
We have to answer this question by making a refenrence to POPS rule 2012. As per these rules the palce of service should be considered where the service receiver is located.
Since the service receiver is located in J&K, the place of receipt of service should be considered as J&K.
As the service is deemed to be provided in J&K, service tax is not chargeable.
Please wait for some other replies for more clarifications.
As per Rule 5 of Place of Provision of Service Rules, the place of provision of services related to an immovable property would be the place where the immovable property is located or intended to be located.
Some Examples for applying this rule includes
1. Renting of Immovable Property
2. Property Management services
3. Service of Real Estate Agents, Architects,
4. Services supplied in the course of construction, or any civil enginnering work.
Since, the immovable property is located in Delhi, Delhi is the Place were service is deemed to be provided and hence service tax is chargeable on this service although SR & SP reside in J&K