Service Tax on Public Mobile Radio Trunking Services — Rep. of Jet Air Skyline Transport Pvt. Limited, Indore — Regarding - Service Tax - F. No. 341/16/2000

Service Tax on Public Mobile Radio Trunking Services Rep. of Jet Air Skyline Transport Pvt. Limited, Indore Regarding F. No. 341/16/2000-TRU Dated 10-8-2000 I am directed to refer to your letter F. No. V/DCST/(21)(6) Tele/5/99/6600 dated 6th March, 2000 and the copy of the licence agreement of M/s Jet Air Skyline Transport Co. Pvt. Ltd., Indore on the above subject. The matter has been examined in the Board's Office. The services rendered by Public Mobile Radio Trunking Services (PMRTS) are in the nature of providing connectivity, through wireless system or radio frequency, amongst the subscribers falling within a specified area of the service provider. The communication is made through radio terminals or radio trunking hand sets, and a message can be either sent or received at any point of time, and simultaneous listening or talking between two persons is not possible under PMRTS System. These services do not appear, in any way, to be using telephone line or telephone instrument. Hence even if PMRTS providers may be covered as a 'telegraph authority' in terms of license issued to them, appears that they are not providing any service in relation to a telephone connection. In view of the above, it is clarified by the Board that the Public Mobile Radio Trunking Services (PMRTS) are not covered under the scope of taxable services provided in relation to telephone connection' as per sub-section 48(b) of section 65 of the Finance Act, 1994. A revised clarification may therefore be issued to the Commissioners. It has been decided by the Board that, as a matter of policy, all cases involving interpretation of law or policy, relating to service tax, should be referred to the Board for examination and issue of any clarification and no clarification on such matters may be issued by your office.