Taxability in respect of International Private Leased Circuit (IPCL) charges and amendment in the definition of Telegraph Authority u/s 65(111) of the Finance Act, 1994 - Regarding.

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..... INSTRUCTION dated 15-7-2011 Subject : Taxability in respect of International Private Leased Circuit (IPCL) charges and amendment in the definition of Telegraph Authority u/s 65(111) of the Finance Act, 1994 - Regarding. Representations have been received seeking clarification regarding taxability of IPCL charges incurred in foreign currency by BPO/MNCs against receipt of .....

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..... instant case since the service provider is located abroad, he is not covered under the definition given in Section 65(109a) . Thus the service provided by foreign vendors cannot be taxed under Telecommunication service. 3. Section 65(105)(zzzq) read with Section 65(104c) of the Finance Act, 1994, defines Business Support Service as services provided in relation to business or commerce and .....

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..... IPCL service from abroad is chargeable to Service Tax under Business Support Service [ Section 65(105)(zzzq) ibid] at the hands of recipients situated in India in terms of Section 66A of the Finance Act, 1994 , read with Rule 2(1)(d)(iv) of the Service Tax Rules, 1994 and provisions of Taxation of Services (Provided) From Outside India and Received in India Rules, 2006 apply. All pen .....

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