Facsimile (FAX) - Taxable Services - As appliable on or before 30-6-2012 - Service Tax

Facsimile (FAX) (w.e.f. 16.7.2001) With effect from 1-6-2007 (Finance Act, 2007), this service has been deleted and now this service shall be taxable under new clause (zzzx) as "Telecommunication Service". Old provision, as effective upto 31-5-2007 are discussed below: What is taxable - 65(105)(zg) Any services provided or to be provided to a subscriber, by the telegraph authority in relation to a facsimile (FAX) communication; Who is the receiver of service A subscriber Who is the provider of service The telegraph authority Who is liable to pay service tax Designated officers or persons of the service provider 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 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 Subscriber - 65(104) "subscriber" means a person to whom any service of a telephone connection or a facsimile (FAX) or a leased circuit or a pager or a telegraph or a telex has been provided by the telegraph authority; Comments: 1. Initial charges are not taxable but adjustment made by the telegraph authority out of such charges are taxable. 2. Private fax operators likes P.C.O. booths are not taxable. 3. Telephone Exchanges and Office of Posts and Telegraph are liable for tax. 4. License Fee will be taxable otherwise than charged by the Central Government.