Service Tax — Collection of Service Tax on Telephones — Regarding - Service Tax - T No. 63/94 Jamshedpur

Service Tax Collection of Service Tax on Telephones Regarding Trade Notice No. 63/94, dated 9-11-1994 of the Jamshedpur Collectorate It is brought to the notice of Trade and all concerned that Service Tax has been levied with effect from 1st July, 1994 on three services, namely - (1) Service provided by the Telegraph authorities to the subscribers in relation to telephone connections. (2) Service provided by the insurer to the policy holder in relation to General Insurance business. (3) Service provided by a stock broker. 2. Provisions for registration, payment of Service Tax, maintenance of records, assessment, quarterly return and appellate mechanism etc. have been made in the Service Tax Rules, 1994 vide Notification No. 2/94-Service Tax, dated 28-6-1994 and this has already been brought to the notice of the Trade through this Collectorate Trade Notice No. 46/94 dated 26-7-1994. 3. By Notification No. 2/94-Service Tax, dated 28-6-1994, Director General of Posts and Telegraphs and the Chairman-cum-Managing Director of Mahanagar Telephone Nigam Ltd., Delhi were designated as assessees and made responsible for payment of Service Tax on telephone. However, considering the difficulties expressed by the Department of Telecommunication (DOT) and Mahanagar Telephone Nigam Ltd. (MTNL) due to the centralisation of collection and assessment formalities, a revised procedure has been prescribed for collection of Service Tax relating to Telephone Services in respect of DOT and MTNL by the Central Board of Excise Customs, New Delhi. 4. Accordingly to the revised procedure the Service Tax on Telephone will now be collected from all the Secondary Switching Areas (SSAS) belonging to the Department of Telecommunications (DOT). Four Secondary Switching Areas, namely Ranchi, Dhanbad, Hazaribagh and Jamshedpur of Bihar Telecom Circle falling within the jurisdiction of Collector of Central Excise, Jamshedpur, will have to be individually registered with the Collector of Central Excise, Jamshedpur at Jamshedpur. REGISTRATION 5. All the SSAS are required to apply for registration in form ST-1 (copy enclosed) to the Asstt. Collector (Technical), Central Excise Collectorate, 143, New Baradwari, Jamshedpur-1. An acknowledgement of application form ST-1 may be obtained from Supdt. (Tech.) on the duplicate of form ST-1. The application addressed to Asstt. Collector (Tech.) may be handed over to Supdt. (Tech.), 143, New Baradwari, Jamshedpur-1. The Registration Certificate will be issued by the Asstt. Collector (Tech.) in format ST-2 within 7 days from the date of receipt of application for registration. If the registration certificate is not granted within the said period the registration applied for shall be deemed to have been granted. 6. All the SSAS will submit the prescribed quarterly return to the Collector of Central Excise, Jamshedpur for the purpose of assessment of Service Tax. In addition, the SSAS will also intimate by fax/telex/telegram, the total amount of Service Tax collected during a month, by the 5th of the following month to the Collector, Central Excise, Jamshedpur. Service Tax collected during the month will be booked/credited by the SSAS under the head "0044-Service Tax - Service Tax on Telephone Billing" by the 15th of the month following the calender month Penal interest and penalty payable, if any, on delayed payment of tax by the SSAS will be credited and classified under sub-head "Other Receipts" of the minor head "Service Tax on Telephone Billing". There will not be any payment by TR-6 Challan. It will be only by booking/crediting under the head mentioned above. 7. All Trade Association/Chambers of Commerce/Members of RAC in the Central Excise Collectorate, Jamshedpur are requested to bring the contents of this trade notice to the notice of their constituent members and other concerned. 8. Telephone Authorities are requested to take action accordingly.