leased circuit "means a dedicated link provided between two fixed locations for exclusive use of the subscriber

Indian Service Tax

Leased Circuit 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%.

Definition: leased circuit "means a dedicated link provided between two fixed locations for exclusive use of the subscriber and includes a speech circuit, a data circuit or a telegraph circuit, [Section 65(60)]

Taxable service: Leased circuit service provided by the telegraphic authority to a subscriber.

Value of taxable service: Gross amount chtaarged 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.

Person liable to pay: Telegraph Authority.

Head of Account

S1. Code SCCD Minor-head 004400134 Leased Circuits Service 00440136 Sub-head 00440013401 Tax Collection 00440137 119 Sub-head 00440013402 Other Receipts 00440138 110 Sub-head 00440013403 Deduct Refunds 00440139 111

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".