FASCIMILE SERVICE

 

Date of Introduction: 16.07.2001 vide Notification No.4/2001-ST dt.09.07.2001.

Definition:

“Facsimile”(FAX) means a form of telecommunication by which fixed graphic images, such as printed texts and pictures are scanned and the information converted into electrical signals for transmission over the telecommunication system.

(Section 65(25) of Finance Act, 1994 as amended)

“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 license under the first proviso to sub-section (1) of Section 4 of that Act.

                  (Section 65(74) of Finance Act, 1994 as amended)

As per Section 3(6) of Indian Telegraph Act, 1885, “ Telegraph Authority” means the director General of Posts and Telegraphs and including any officer empowered by him to perform all or any the functions of the Telegraph authority under this Act.

Taxable events and scope of service:

Taxable service means any service provided to a subscriber, by the telegraph authority in relation to ‘facsimile communications’. (Section 65(72)(zg) of Finance Act, 1994 as amended)

As regards facsimile services, at present the telegraph authorities are providing it in two ways. One is “bureau fax” where the charges are based on a flat rate per page depending upon paper size and the other is “ordinary fax” where charges are equivalent to the number of calls consumed in faxing the paper. In case of “bureau fax”, this is provided by the Dept. of Telecom through post and telegraph offices. In the second type of facsimile service, the service charges are equal to the telephone calls consumed and it is already covered in the ambit of Service Tax under the category of telephone connections.

(Ministry’s F.No.B11/1/2001-TRU dt.09.07.2001)

Value of the Taxable Service:

The value of the taxable service shall be the gross amount charged by the service provider for such service rendered by him includes the adjustments made by the telegraph authority from any deposits made by the subscriber at the time of application for Facsimile but dose not include initial deposit made by subscriber at the time of application for Facsimile.  (Section 67 Finance Act, 1994 as amended)

Exemption and Exclusion:

Service Tax will not be payable in respect of those facsimile services where service charges are based on the number of telephone calls consumed. Private fax operators are providing the second kind of facsimile service and therefore, they are not liable to Service Tax again.

(Ministry’s F.No.B11/1/2001-TRU dt. 09.07.2001)

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