Extent, Commencement and Application [Section 64] :
(1) Extent & commencement: The Finance Act, 1994 came into force from 1.7.1994. Vide section 64(1), the provisions of the Act extends to the whole of the country except the State of Jammu and Kashmir, and vide section 64(3), the levy applies to all “taxable services provided”. As per Article 370 of the Constitution, any Act of Parliament applies to Jammu & Kashmir only with concurrence of State Government. Since, no such concurrence has been obtained in respect of the Finance Act, 1994; the provisions of service tax are not applicable in the state of Jammu and Kashmir.
(2) Levy of service tax: Levy of service tax extends to whole of India except Jammu and Kashmir.
“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 other maritime zone as defined in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976;
(c) the seabed and the subsoil underlying the territorial waters;
(d) the air space above its territory and territorial waters; and
(e) the installations, structures and 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 [Section 65B(27)] .
| Indian territorial waters extend upto 12 nautical miles from the Indian land mass. |