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ST Circular No. 57/6/2003
21st April,2003 

F.No.137/19/2003 CX.4
Government of India
Ministry of Finance & Company Affairs
Department of Revenue
Central Board of Excise & Customs

Subject:- Irregular Levy of Service Tax by the service providers @8% after budget i.e. 1-3-2003- regarding 

            It has come to the notice of the Board that service providers have started collecting service tax @8% immediately after the budget i.e.1-3-2003. However, this rate will come to effect from 14th May, 2003 on which the Finance Bill received the accent of the President. In this  connection it is stated that if any amount has been collected as service tax but the same is not deposited with the Government in terms of provisions of Section 83 of Finance Act, 1994 same becomes recoverable. 

            It is, therefore, requested to alert the field formations to verify the returns carefully for the above mentioned period so as to ensure that amount collected in excess as Service tax should e deposited with the exchequer.

Manish Mohan
Under Secretary to the Government of India