Accounts Notes: Service Tax on Telegraph Service

Saturday, 2 July 2011

Service Tax on Telegraph Service

Indian Service Tax
Telegraph Service
Effective Date:

16/07/2001.
Authority

Notification No. 4/2001-ST, dt. 9/7/2001 (for full text of Notification see under Broadcasting).
Rate of Service Tax

8% from 14/5/2003 (5% upto 13/5/2003). 10% from 10/9/2004 - Cess 2% of 10% = 0.2. Total ST = 10.2%.
Definitions

"telegraph" has the meaning assigned to it in clause (1) of Section 3 of the Indian Telegraph Act, 1885 (13 of 1885); [Section 65(11 0)].

"telegraph authority"has the meaning assigned to it in clause (6) of Section 3 of the Indian Telegraph Act, 1885 (13 of 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; [Section 65(111)].
Taxable Service

Telegraph service provided by the telegraph authority in relation to a communication through telegraph to a subscriber.
Value of Taxable Service

Gross amount charged from the subscriber, but the initial deposit made by the subscribers at the time of application shall not be included in the value of taxable service. However, any adjustment made by the Telegraph Authority from any deposit made by the subscribers at the time of application for such services shall be included.
Exemption

Initial deposit at the time of application
Person Liable to Pay

Telegraph Authority.
Head of Account

Minor-head

004400135

Telegraph Services

00440140

Sub-head

00440013501

Tax Collection

00440141

110

Sub-head

00440013502

Other Receipts

004400142

119

Sub-head

00440013503

Decuct Refunds

00440143

112
Main text of Departmental Circular/TN

[Ministry's F.No. B.II/I/2000-TRU dated 9.7.2001 - Annexure XII]

N.B.:- For full text of Ministry's F.No. B.II/I/2000-TRU dated 9/7/2001

see Annexure XII under"Facsimile Service".