service tax applicability - Laying of telephone cables

[Guest]

Whether the services offered for laying of telephone cables along highway by trenching method falls under service tax net.i think the law says that only if cable is laid by drilling method comes under service net.Please clear.

[Surender Gupta]

The activity is liable to service tax.

[Guest]

Yes .You are very correct. The cable laying activity undertaken along the roadside is not a taxable service.

Pl refer boards circular 123/2010 dated24.05.2010,which says clearly without any conditions the activity is not a taxable service.

 

The punjab and haryana high court also confirms the activity is not a taxable service.

Hence as on today the cable laying activiy is not a Taxable service.

 

The CESTAT kolkatta also confirmed in one of thir case between  Baba constructions Vs CCE , ranchi that the ofc cable laying is not a taxable service..

AI Summary

Service Tax Not Applicable on Laying Telephone Cables via Trenching: Board Circular & Court Rulings Confirm A query was raised regarding the applicability of service tax on the activity of laying telephone cables along highways using the trenching method. One response asserted that the activity is liable to service tax. However, another response clarified that this activity is not taxable, referencing a board circular and rulings from the Punjab and Haryana High Court, as well as the CESTAT Kolkata, which confirmed that such cable laying activities are not subject to service tax.