TMI BlogCellular telephone service — ClarificationX X X X Extracts X X X X X X X X Extracts X X X X ..... bile operation to cellular telephone operators by DOT will be subject to service tax. Cellular telephone services operates between two subscribers holding cellular phone and also with persons holding local telephone. While the Company charges home network/air time charges on their subscribers using their network cellular phone facility, additionally they collected land line charges when the subs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Sim Card has to be excluded from activation charges to be collected from subscribers for the purposes of levy of service tax. Decision: The value of taxable services in relation to telephone connection provided to subscribers is the gross total amount received by the telegraph authority from the subscriber. The Sim Card is essentially an activation device necessary for operating the cellula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f service tax required to be made by them, without following the procedure of filing a refund claim in respect of excess payments made earlier. Decision: There is no provision in the Finance Act, 1994 to adjust service tax against tax already paid. The assessee has to file a refund claim under Section 11B as made applicable to service tax and cannot make adjustment while raising the bills. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eived by the telegraph authority from the subscriber. In case the service is provided free and no amount is received by the telegraph authority, the question of service tax liability does not arise. Only land line charges will be liable for tax. V. Issue: Whether the company can allow discount on their air time charges and in such cases are eligible to pay tax only on reduced amount. Cellula ..... X X X X Extracts X X X X X X X X Extracts X X X X
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