Examine whether service tax is leviable in the context of provisions of the Finance Act, 1994 when services are provided in a vessel stationed at a distance of 54 nautical miles from the Indian landmass in Exclusive Econ
CS Professional · Advanced Tax Laws and Practice · PYQS · December 2016
Examine whether service tax is leviable in the context of provisions of the Finance Act, 1994 when services are provided in a vessel stationed at a distance of 54 nautical miles from the Indian landmass in Exclusive Economic Zone (EEZ) of India for carrying out fishing operations.
Answer & Explanation:
Levy of service tax extends to whole of India except the state of Jammu and Kashmir and India means, inter alia, the vessels located in the continental shelf of India and the Exclusive Economic Zone of India, for the purposes of prospecting or extraction or production of mineral oil and natural gas and supply thereof. Therefore, though the vessel is stationed at a distance of 54 nautical miles from Indian land mass in Exclusive Economic Zone (EEZ) of India, services provided there will not be liable to service tax as the vessel is used for carrying out fishing operations and not for oil/ natural gas.
Topics: Indirect Tax
Related Questions in this Topic
- Mention, with reasons, whether the following are liable to service tax Fees paid to the Appellate Tribunal established ...
- Mention, with reasons, whether the following are liable to service tax A provision of service by an employee to the emp...
- Mention, with reasons, whether the following are liable to service tax A transaction in money
- Mention the methods which are generally used for computation of VAT.
- Briefly discuss the availability of input tax credit under VAT in respect of stock transfer.