service tax applicability - Laying of telephone cables, Service Tax

[Rahul Nayak]

Whether the services offered for laying of telephone cables along highway by trenching method falls under service tax net.i think the law says that only if cable is laid by drilling method comes under service net.Please clear.

Posts / Replies

[Surender Gupta]

The activity is liable to service tax.

[chandrasegar gurusamy]

Yes .You are very correct. The cable laying activity undertaken along the roadside is not a taxable service.

Pl refer boards circular 123/2010 dated24.05.2010,which says clearly without any conditions the activity is not a taxable service.

 

The punjab and haryana high court also confirms the activity is not a taxable service.

Hence as on today the cable laying activiy is not a Taxable service.

 

The CESTAT kolkatta also confirmed in one of thir case between  Baba constructions Vs CCE , ranchi that the ofc cable laying is not a taxable service..