service tax applicability - Laying of telephone cables

[Asked by 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.

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 applicability: cable laying by trenching along roads treated as non taxable service under circulars and rulings.
The document records conflicting positions on Service Tax applicability to roadside telephone cable laying: one view asserts liability, while other respondents, citing a central board circular and tribunal/high court decisions, conclude that cable laying by trenching along roads constitutes a non taxable service and is therefore outside the service tax net.