Our Previous Issue carried an item on "Levying of Service Tax on Broadcasting" @ of 5% in case of all Advertisements Broadcast.

Subsequently the Commissioner of Central Excise, Mumbai has issued a Trade Notice No. 43 / 2003, dated 08.05.2003 according to which Prasar Bharati Corporation, (Doordarshan and All India Radio) is not liable to pay Service Tax.

No Service Tax will be charged in our monthly Ad - Charges Bills. The Service Tax charged in the April - 2003 Bills may please be treated as cancelled which is being withdrawn from your account. Hence, the Accredited Agencies need pay only net amount of the April - 2003 Bills (excluding Service Tax). Further, the agencies who have already made advance payment for bookings of April - 2003 onwards, may please approach the respective Stations for a credit note covering the portion of Service Tax amount paid, which can be utilized in their next bookings.