The Hindu Business Line : Chennai zone targets Rs 1,650 cr in service tax

THE service tax collection target for Chennai zone has been more than doubled to Rs 1,650 crore for the fiscal ending March 31, 2005. Last year, the zone collected Rs 680 crore, said Dr J. Sridharan, Chief Commissioner of Central Excise.

Till September, the collection has been Rs 408 crore, he told presspersons. The Chennai zone comprises service tax commissionerates in the city and Pondicherry commissionerate.

All southern districts in the State come under Coimbatore zone.

To improve service tax collection, which is targeted at Rs 20,000 crore for the entire country for the current fiscal, the Union Finance Minister recently announced a scheme envisaging a two-tier strategy to bring potential service taxpayers into the net.

The first aims at disposal of all adjudication cases pending wherein only the technicalities are involved with waiver of penalty, Dr Sridharan said.

The second measure aims to bring those service providers who could not register themselves as service tax assessees in earlier years.

The department will provide an opportunity to register them now without questions being asked about past liability and without penalising them for the delay.

This one-time measure is available to them up to October 31, and no extension will be available beyond the date, he said.

The department is organising 24 special camps, between October 11 and 31, at various locations in Chennai to enable assessees register themselves, Dr Sridharan said.

Out of the total revenue collections, the top ten services (71 in total) constitute around 75 per cent.

This includes 33 per cent from general insurance, 18.5 per cent from telephones and 4 per cent from banking and finance.

There is potential to reach a much wider range of service tax providers. About 900 television cable operators have registered with the department, he said.