Service tax exclusion on delayed payment surcharge: surcharges on telephone bills are not subject to service tax under valuation rules. Service tax is not leviable on surcharges collected for delayed payment of telephone bills because the taxable value of telegraph/telephone services includes only amounts charged for the services themselves; surcharges do not alter that value. The Board withdraws its earlier contrary circular and directs finalisation of pending disputes and communication to trade and field formations.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Service tax exclusion on delayed payment surcharge: surcharges on telephone bills are not subject to service tax under valuation rules.
Service tax is not leviable on surcharges collected for delayed payment of telephone bills because the taxable value of telegraph/telephone services includes only amounts charged for the services themselves; surcharges do not alter that value. The Board withdraws its earlier contrary circular and directs finalisation of pending disputes and communication to trade and field formations.
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