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Indirect Tax Laws

Notes  To inspect the service tax cells in the Commissionerate to ensure that they are functioning
effectively.

 To undertake any other functions as assigned by the Board from time-to-time.
The Directorate of Service Tax has been co-ordinating between the Board and Central Excise
Commissionerates. It also monitors the collection and the assessment of Service Tax. The Service
Tax Revenue Reports, received from various Central Excise Commissionerates, are complied at
the Directorate and the performance of the Commissionerates/Zones in Service Tax collection
is being monitored for corrective actions.
During the course of Inspection of the Central Excise Commissionerates, the Inspection team of
this Directorate has in variably pointed out the requirement of the staff in field level for proper
and effective implementation of Service Tax. The Directorate has also suggested necessary
measures to be adopted to increase Service Tax Revenue collection. The grey areas and evasion
prone services have been brought to the notice of the Commissionerate for conducting effective
Surveys/Audit.
The Directorate of Service Tax has drafted a separate act for Service Tax and the Rules therefore
and has forwarded the same to the Ministry for approval vide Letter F.No.V/DGST/30-Misc-56/
2000 dtd. 19/02/2001. The Service Tax Manual has also been prepared and forwarded to Board
for approval and issue during year 2001. The correspondences received from field formations
and service providers are scrutinised from law and the clarifications sought for are replied to
wherever possible. In cases where the doubts/clarification sought involved policy matter, the
Board has been apprised for issuing clarification/instruction.

This Directorate has taken up the issue of forming a database regarding register of the assessee
and collection of Service Tax in co-ordination with the Directorate of Systems.
The Directorate has also recommended electronic administration in implementation of Service
Tax to bring transparency in tax administration and avoid interfacing between service providers
and tax authorities. The Board has also instructed the Commissionerate to feed the figures of
service tax revenue collection in the system on line before 7th of every month. The Directorate
of Service Tax has advised all the Central Excise Commissionerates to reconcile service tax
collection with the help of T.R.-6 challans and the statements of the P.A.O.
The Directorate of Service Tax has been conducting inspection of Central Excise Commissionerates.
During the course of inspection, verification of Service Tax records, maintained by the
Commissionerate, is done. Staff of Service Tax Cell is also guided suitably in proper
implementation of Service Tax and maintenance of records. A meeting with the Service Tax
Officers is always conducted in the Commissionerate during inspection. Open-house meeting is
also arranged in the Commissionerate wherever it was felt necessary. Problems faced by the
assessees in Service Tax compliance are sorted out in the open-house meeting with the members
of various service providers associations.
Presently there are 65 Central Excise Commissionerates and 6 Service tax Commissionerates
within the jurisdiction of 23 Central Excise Zones. The 6 Service Tax Commissionerates have
been established in Mumbai, Delhi, Kolkata, Chennai, Ahmedabad and Bangalore.

Notes The Directorate of Service Tax has drafted a separate act for Service Tax and the
Rules therefore and has forwarded the same to the Ministry for approval vide Letter
F.No.V/DGST/30-Misc-56/2000 dtd. 19/02/2001.

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