https://www.taxtmi.com/caselaws?id=194346 Under the Own Your Telephone Scheme, the initial lump sum paid by the subscriber was treated as advance rental and not a deposit, so the reduced rental had to be reflected in the taxable value for service tax. Rule 2(cc) of the Indian Telegraph Rules, 1951 characterises the arrangement as advance rental with a corresponding reduction in rental for a fixed period. The valuation rule in section 67(b) of the Finance Act, 1994 applies its deposit-related adjustment only where the amount is in the nature of a deposit. As the payment was not a deposit, the service tax had to be computed on the reduced rental, and the demand based on the unreduced rental was unsustainable. en-us Tue, 21 Dec 2010 00:00:00 +0530 Tue, 05 Sep 2017 17:35:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=194346 Under the Own Your Telephone Scheme, the initial lump sum paid by the subscriber was treated as advance rental and not a deposit, so the reduced rental had to be reflected in the taxable value for service tax. Rule 2(cc) of the Indian Telegraph Rules, 1951 characterises the arrangement as advance rental with a corresponding reduction in rental for a fixed period. The valuation rule in section 67(b) of the Finance Act, 1994 applies its deposit-related adjustment only where the amount is in the nature of a deposit. As the payment was not a deposit, the service tax had to be computed on the reduced rental, and the demand based on the unreduced rental was unsustainable. Case-Laws Service Tax Tue, 21 Dec 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=194346