Telephone Services Reg.: Registration, Payment of Tax and Filing of Returns Etc. - Service Tax - 05/05/94

This Circular has been rescinded by Circular No. 93/4/2007-ST, Dated: May 10, 2007 SERVICE TAX CIRCULAR NO 5/5/94 DATED-11.10.1994 Telephone Services Reg.: Registration, Payment of Tax and Filing of Returns Etc. Attention is drawn to Service Tax Circular No. 1/1/94, dated the 29th June, 1994 . In terms of Para 5(a) of the circular a procedure has been prescribed for collection of service tax relating to telephone services. Representations have been received from the Department of Telecommunications (DOT) and MTNL about the difficulties in centralizing the collection and assessment formalities taking these factors into consideration, a revise procedure is being prescribed for the collection of Service Tax in relating to Telephone Services in respect of DOT and MTNL. I. Department of Telecommunications (DOT) (i) DOT has a network of 250 Secondary Switching Areas (SSAs). These SSAs are under the jurisdiction of 18 Telecom Circles. A list of the SSAs and the Telecom Circles is enclosed. (ii) These Secondary Switching Areas (SSAs) will be individually registered with the Collector of Central Excise in whose jurisdiction they are located. (iii) Efforts have been made to identify all the Secondary Switching Areas (SSAs) which will be under the jurisdiction of a particular Collectorate. However, in case of any incorrect identification, Collector of Central Excise may rectify them at their own level by registering the SSAs in their jurisdiction. (iv) These Secondary Switching Areas (SSAs) will submit the prescribed quarterly return to jurisdictional Collector of Central Excise for the purpose of assessments of Service Tax. In addition, the SSAs will also intimate by fax/telex/telegram, the jurisdiction Collector of Central Excise, the total amount of service tax collected during a month, by the 5th of the following month. 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 calendar month. Penal interest and penalty payable, if any, on delayed payment of tax by the SSAs will be credited and classified under the sub-head "Other receipts" of the minor head "Service Tax on Telephone Billing". (v) There will not be any payment by TR-6 Challan . It will be only by booking/crediting under the head mentioned above. (vi) Order No. 1/1/94 and 2/2/94 issued under Rule 3 have now been rescinded and a new order No. 3/3/94 specifying the jurisdiction of all Collectors of Central Excise has been issued. (vii) The cell/division created in the headquarters of the collectorate will deal with matters relating to Service Tax on telephones; (viii) Collector of Central Excise, Bombay-I and Collector of Central Excise, Calcutta-I will be responsible for collection of Service Tax in Bombay and Calcutta as is being done in respect of other services. II. Mahanagar Telephone Nigam Ltd. (MTNL) (i) The Chief General Manager, MTNL, Delhi will register with Collector of Central Excise, Delhi. (ii) The Chief General manager, MTNL, Bombay will register with Collector of Central Excise, Bombay-I. (iii) The quarterly return will be filled by the Chief General Manager, Delhi and Bombay with Collectorate registered for the purpose of assessment of Service Tax. (iv) The payment of Service Tax by MTNL will be made under TR-6 Challan in the nominated Nationalised bank in Delhi and Bombay. The payment will be made by 15th of the month following the calendar month as required in the Act. The Chief General Manager, MTNL, Delhi and Bombay will also intimate by fax/telex/telegram to the local Collector, the total amount of Service Tax collected during the month by 5th of the following month for the purpose of information.