LEASED CIRCUITS

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

Definition:

“Leased Circuits” means a dedicated link provided between two fixed locations for exclusive use of the subscriber and includes a speech circuit, data circuit or a telegraph circuit.

(Section 65(35) 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 nay of 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 ‘leased circuits’. (Section 65(72)(zd) of Finance Act, 1994 as amended)

The Service Tax on the ‘leased circuits’ service shall be collected in the same manner as applicable to Telephone Services. (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 lease circuits but dose not include initial deposit made by subscriber at the time of application for lease circuits. (Section 67 Finance Act, 1994 as amended)

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