Circular No. 74/4 /2004-ST
23rd January, 2004
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject : Clarification for the maintenance and repair services for Automated Teller Machines (ATMs) – Liability of service tax – Regarding
The Board has received representations seeking clarification with regard to leviability of Service Tax in respect of maintenance & repair of ATMs in terms of Notification no. 20/2003-ST dated 21.8.2003.
2. The matter has been examined in the Board. It is clarified that computers are essentially data processing machines and their function is to process analog or digital data. There may be machines, which use such processed data to perform certain specified functions. These machines may involve processing of data but their principal function is not processing of data per se, but using such processed data for performing independent functions. These are not “computers” but are computerised machines. ATM is one such machine. For the purposes of Customs Tariff also, whereas computer falls under heading 84.73, ATMs fall under sub-heading 8472.90.
3. In view of the above stated facts, the Board has taken a decision that Automatic Teller Machine is not a “Computer”, “Computer System” or “Computer Peripherals” (all of which perform or aid primarily in, data processing per se) and thus their maintenance and repair does not fall under exemption Notification No.20/2003-ST, dated 21st August, 2003. Accordingly such services are liable for service tax.
2.A suitable trade notice may be issued
4. Hindi version will follow.
Under Secretary to the Government of India