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If I install a landline connection and initially pay some
security, after that am I liable to pay service tax or
sales tax,both or none?
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Answer / abhivirthi
Payment of Security amount towards landline telephone
connection is only advance payment of one month rental which
is refundable at the time of surrender of landline telephone
connection. Hence this will not attract any tax liability
under any Act.
Payment of telephone bills for call charges including
rentals are only services provided and service charges will
be applicable for the services rendered. The telephone
provided for usage will have to be returned at the time of
surrender of telephone connection and hence there is no
transfer of property involved and no sales tax will be
applicable as there is no transfer of property involved.
ABHIVIRTHI Tax and Industrial Consultancy,
R.R.JAGADEESAN, Tax and Industrial Consultant
H-63, Palaami Enclave, New Natham Road
MADURAI-625014.
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