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2017 (6) TMI 1025 - AT - Service TaxBusiness Support Service - appellant was providing interconnection link facility to various basic telephone service providers, infrastructure and space and was charging infrastructure charges, port charges, rent for space etc - Revenue was of the view that the appellant was liable to pay Service Tax on these charges with effect from 1.5.06 under the category of a new service “Business Support Service under section 65(104c) - Held that: - such interconnected facility is not provided on its own by the appellant but is a mandatory direction to all the telecommunication companies so as to facilitate interconnection of various service providers. It is also to be noted that such charges have been recovered by the appellant from other basic telephone service providers and not telephone subscribers. CBEC vide their Circular dated 12.3.2007 clarifies to the effect that IUC will not be liable to pay service tax under the category of telephone services since it is not a charge recovered by the telegraph authorities for providing of telecommunication services to the subscriber. This clearly takes the IUC outside the service tax levy as far as telephone service is concerned. Appeal allowed - decided in favor of appellant.
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