Service-tax collections continued to remain buoyant in the north of the country as its total mobilisation reached Rs 946.91 crore, even surpassing excise collections for 2008-09.

The total collections of service tax in the north, comprising Punjab, Himachal Pradesh, Jammu and Kashmir and Chandigarh zoomed by up to 12.36 per cent to Rs 946.91 crore from Rs 842.73 crore for 2007-08. Although the actual collections were short of the target of Rs 1,050 crore, as per data provided by the central excise department.

Significantly, the service tax collections have exceeded the total excise collections of Rs 914.68 crore for 2008-09.

"Our department has been able to maintain growth in service tax collections which has mainly come from telephone or mobile and banking sectors," a senior official of Central the Excise department said.

The major increase in collections was observed by the Chandigarh office as it collections grew by 18.37 per cent to Rs 634.53 crore against Rs 536.06 crore in 2007-08. The collections in Jalandhar marginally increased by 1.25 per cent at Rs 122.32 crore in 2008-09.

Service tax proved to be the only segment which posted handsome growth in the northern region in view of the meltdown effect, he said.

Notably, the central excise collections in the northern region declined by 40 per cent while custom collections marginally went up by 2 per cent during 2008-09.

Buoyed up by the growth momentum in service tax, the central excise department has even decided to set up a separate division for handling service tax-related matters for the first time here in the northern region. Besides, new ranges of this division would also be set up at Mohali (2), Chandigarh (3) and Ludhiana (3).

"The new division will now look after the Service tax collections and other related matter for areas which fall under its jurisdiction," he said.