Service tax applicability - services rendered in Srinagar, Service Tax

[VIKAS KATYAL]

A private limited company is in the business of construction. They have got a contract for some interior work of a hotel in Srinagar. This is a complete labour job and the same service is taxable when provided for in delhi. But as the service tax act is not applicable in srinagar is the company liable to charge tax or not. Services are to be provided on the site in srinagar only.

Posts / Replies

[dayashankar]

On the contract of some interior work of a hotel in Srinagar, the private company is liable to charge service tax at the rate of 8.5% under the General Sales Law of that State, which empowers the goverenment of that state to charge service tax under that law