Service Tax — Revenue refund under Head of Account 0044-Service Tax - Service Tax - 24/01/98

Service Tax Revenue refund under Head of Account 0044-Service Tax Service Tax Circular No. 24/1/98 Dated 23-4-1998 A doubt has arisen whether Bank Branches nominated for collection of central excise, customs and other dues and payment of refunds etc. under major head of account No. 037-Customs and 038-Union excise duties are equally authorised for collection and payment of refunds etc. under Head of Account No. 0044 - Service Tax. 2. The matter has been examined. The existing scheme as applicable to collection accounting of central excise, customs, and other dues and payment of refund, rebate and drawbacks etc. by the branches of Public Sector Bank is equally applicable to Service Tax also. Accordingly, instructions issued by Reserve Bank of India vide Circular No. GA/NB. No. 95/41.01.001/94-95, dated 14-7-1994 for collection and accounting of central excise, customs and other dues and payment of refunds, rebates and drawbacks etc. by the branches of Public Sector Banks will apply mutatis mutandis in respect of receipt, reporting, accounting of service tax collection as well. A copy of RBI's instruction is also enclosed for information. Copy of Letter No. Coord/13-6/94-95/Service Tax/1129, dated 31st March, 1998 received from Dy. Controller of Accounts, CBEC, New Delhi, addressed to Sanghamitra Panda, Director (CX-4) Subject: Service Tax Revenue refund under Head of Account 0044-Service Tax Regarding In this connection it is stated that the instructions contained in the revised Memorandum of instructions issued by the Reserve Bank of India for collection and accounting of Central Excise, Custom and other dues and payment of refund, rebate and drawbacks etc. by the branches of the Public Sector Banks will apply "mutatis mutandis" in respect of Service Tax as well. In this connection a copy of the RBI's Circular No. GA.NB. No. 95/41.01.001/94-95, dated 14-7-1994 is enclosed. RBI's Letter No. GA.NB.No. 95/41.01.001/94-95, dated 14th July, 1994 , addressed to the Chief General Managers of State Bank of India and its associates and to the General Managers of Nationalised Banks Subject: Levy of service tax on telephones, brokerage - Procedure for insurance and stock receipts/accounting As you are aware, Government of India in the Budget 1994-95 proposed to levy a service tax on Telephones, Insurance and Stock brokerage. Accordingly, Government of India have since decided to implement the proposal for levy of service tax with effect from 1st July, 1994. We forward herewith a copy each of the Notifications Nos. 1/94 and 2/94, dated the 28th June, 1994 issued in this regard by the Ministry of Finance, Department of Revenue for your information. The salient features thereof are briefly given below:- (i) Details of service tax sought to be levied and manner of collection Service Tax on services provided to :- (a) an investor by a stock broker in connection with the sale and purchase of securities. (b) a subscriber by the telegraph authority in relation to a Telephone connection. (c) a policy Holder by an insurance company in relation to general insurance business. (ii) Banking arrangements for collection of service tax The existing scheme as applicable to the collection of Central Board of Excise Customs (CBEC) revenue is applicable to the collection of service tax. Accordingly, the assessees as defined in para 2 of the Notification No. 2/94, dated 28th June 1994 (vide Annexure), will deposit the collections into the existing authorised branches of the nominated banks including sub-agency banks under CBEC collection, scheme. The assessee will tender the amounts along with a challan, in Form TR-6, in quadruplicate, (by the 15th of the month immediately following the calendar month) as in the case of other CBEC dues viz. 0037-Customs, 0038-UED. The specimen of challan to be used by the assessee is enclosed to the copy of notification. (iii) Head of Account The service tax so collected by the assessees will be credited to 0044- Service Tax. (iv) Reporting and Accounting System (a) The scheme of collection of service tax will be operated by Central Board of Excise Customs. (b) As stated above the banks presently nominated for collection of CBEC revenue have been entrusted with the collection of revenue on account of Service Tax as well for the present. Accordingly, the instructions contained in the Revised Memorandum of Instructions for collection and accounting of Central Excise, Customs and other dues and payment of refunds, rebates and drawbacks etc. by the branches of public sector banks (effective from 1st April 1986) issued by us will apply, mutatis mutandis, in respect of receipt, reporting, accounting of `Service Tax' collections as well. 3. As the Service Tax is leviable with effect from 1st July, 1994, we shall be glad if you will please issue instructions immediately to the concerned branches to accept the service tax tendered by the assessees for eventual credit to Government Account in terms of CBEC collection procedure.