Telecommunication - Taxable Services - As appliable on or before 30-6-2012 - Service Tax

Telecommunication Service (w.e.f. 01-06-2007 ) What is taxable - 65(105)(zzzx) Any services provided or to be provided to any person, by the telegraph authority in relation to telecommunication service; Who is the receiver of service Any person Who is the provider of service Telegraph Authority Meaning of Telecommunication Service - 65(109a) (109a) "telecommunication service" means service of any description provided by means of any transmission, emission or reception of signs, signals, writing, images and sounds or intelligence or information of any nature, by wire, radio, optical, visual or other electro-magnetic means or systems, including the related transfer or assignment of the right to use capacity for such transmission, emission or reception by a person who has been granted a licence under the first proviso to sub-section (1) of section 4 of the Indian Telegraph Act, 1885 and includes (i) voice mail, data services, audio tex services, video tex services, radio paging; (ii) fixed telephone services including provision of access to and use of the public switched telephone network for the transmission and switching of voice, data and video, inbound and outbound telephone service to and from national and international destinations; (iii) cellular mobile telephone services including provision of access to and use of switched or non-switched networks for the transmission of voice, data and video, inbound and outbound roaming service to and from national and international destinations; (iv) carrier services including provision of wired or wireless facilities to originate, terminate or transit calls, charging for interconnection, settlement or termination of domestic or international calls, charging for jointly used facilities including pole attachments, charging for the exclusive use of circuits, a leased circuit or a dedicated link including a speech circuit, data circuit or a telegraph circuit; (v) provision of call management services for a fee including call waiting, call forwarding, caller identification, three-way calling, call display, call return, call screen, call blocking, automatic call-back, call answer, voice mail, voice menus and video conferencing; (vi) private network services including provision of wired or wireless telecommunication link between specified points for the exclusive use of the client; (vii) data transmission services including provision of access to wired or wireless facilities and services specifically designed for efficient transmission of data; and (viii) communication through facsimile, pager, telegraph and telex, but does not include service provided by- (a) any person in relation to on-line information and database access or retrieval or both referred to in sub-clause (zh) of clause (105); (b) a broadcasting agency or organisation in relation to broadcasting referred to in sub clause (zk) of clause (105); and (c) any person in relation to internet telephony referred to in sub-clause (zzzu) of clause (105);' Meaning of Telegraph Authority - 65(111) "telegraph authority" has the meaning assigned to it in clause (6) of section 3 of the Indian Telegraph Act, 1885 and includes a person who has been granted a licence under the first proviso to sub-section (1) of section 4 of that Act; As per clause (6) of section 3 of Indian Telegraph Act, 1885; 'Telegraph Authority' means the Director-General of Posts and Telegraphs, and includes any officer empowered by him to perform all or any of the functions of the Telegraph authority under this Act."; As per first proviso to sub-section (1) of section 4 of the Indian Telegraph Act, 1885; "the Central Government may grant a license, on such conditions and in considerations of such payments as it thinks fit, to any person to establish, maintain or work a telegraph within any part of India."; Meaning of Facsimile (FAX) - 65(42) "facsimile (FAX)" means a form of telecommunication by which graphic images, such as printed texts and pictures are scanned and the information converted into electrical signals for transmission over the telecommunication system; Meaning of Telex 65(112) "telex" means a typed communication by using teleprinters through telex exchanges, Meaning of Telegraph 65(110) "telegraph" has the meaning assigned to it in clause (1) of section 3 of the Indian Telegraph Act, 1885; ************************* A. As per Paragraph No 6. of Circular No. 96/7/2007 dated 23/8/2007 states that :- "6. This circular supersedes all circulars, clarifications and communications, other than Orders issued under section 37B of the Central Excise Act, 1944 (as made applicable to service tax by section 83 of the Finance Act, 1994), issued from time to time by the CBEC, DG (Service Tax) and various field formations on all technical issues including the scope and classification of taxable services, valuation of taxable services, export of services, services received from outside India, scope of exemptions and all other matters on levy of service tax. With the issue of this circular, all earlier clarifications issued on technical issues relating to service tax stand withdrawn." B. Further Circular No 96/7/2007 dated 23/8/2007 clarifies that :- Issue - 002.01 / 23.08.07 Whether service tax is liable on the amount collected as surcharge for delayed payment of telephone bills? Clarification Whether service tax is liable on the amount collected as surcharge for delayed payment of telephone bills? An amount collected for delayed payment of a telephone bill is not to be treated as consideration charged for provision of telecom service and, therefore, does not form part of the value of taxable service under section 67 read with Service Tax (Determination of Value) Rules, 2006.