Service Tax on sale of space – airways and railways
The DGST informs the field that the Board had an occasion to examine the Service Tax liability by Railways on sale of space for advertisements. It was also discussed that some of the Airlines are also selling space for advertising in their plane/tickets etc. and are required to pay service tax. The Board wants the filed to make an urgent inquiry about service tax liabilities of the Airlines and report whether they are paying service tax on this account. If not, necessary action may be taken to recover service tax within the current finance year itself and report the recovery particulars. The DGST wants the field to furnish the first report including recoveries, if any, by 25th March, 2007 So that the board is apprised of the matter and the final report to be furnished on recovery particulars/action taken to be furnished by 10th April, 2007.
F.NO. V/DGST/21(Deccan Air) 01-06 Dated : March 14, 2007