Business Daily from THE HINDU group of publications Wednesday, Jun 20, 2007 ePaper |
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Info-Tech
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Telecommunications Industry & Economy - Taxation Government - Policy `Govt will not recover service tax on inbound roaming from July 1994 to mid-Jan 2007' K.R. Srivats
New Delhi June 19 The Finance Ministry has decided not to recover the service tax payable on the roaming services provided by domestic telecom operators to people who arrived in India during the period July 1, 1994 to January 14, 2007. Although service tax on inbound international roaming was always payable, official sources said the tax was not levied or paid to the exchequer as a general practice during that period. In January this year, the Finance Ministry had clarified that service tax was payable on the roaming services provided to an inbound international roamer. The circular said that service tax would be collected from domestic telecom operators for such services rendered from January 15 onwards. For the period prior to January 15, the Central Board of Excise and Customs (CBEC) had then said that the matter was under consideration by the Board. The CBEC has now decided not to recover the service tax that was not levied as a result of "general practice" during July 1, 1994 to January 14, 2007. Official sources admitted that this decision would have revenue implications, but maintained that the Finance Ministry has so far not assessed the revenue impact.
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