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

Leased Circuit (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)(zd) Any service provided or to be provided to a subscriber, by the telegraph authority in relation to a leased circuit; 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 Leased Circuit - 65(60) - This definition has been deleted with effect from 1-6-2007 . "leased circuit" means a dedicated link provided between two fixed locations for exclusive use of the subscriber and includes a speech circuit, a data circuit or a telegraph circuit; 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; Comment: 1. Initial deposit is not chargeable. 2. Cable charges circuit installation charges are not taxable. 3. International Cables/Sea Link Cables are taxable services but only the part provide in India is taxable. 4. ISP is liable for service tax only if he provide the dedicated line otherwise will be payable by National gateway providers. 5. Cable Service Provider providing the internet services between the subscriber and his own terminal is liable for service tax. 6. Services provide by VSAT are also taxable. 7. Cables hired to telecom/Internet services provider are also taxable. 8. Inter Connection link charges are taxable.