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CBEC Circular: Interconnection Usage Charges Exempt from Service Tax on Telephone Services, Not Considered Telecommunication Service Charge.

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....CBEC vide their Circular dated 12.3.2007 clarifies to the effect that IUC will not be liable to pay service tax under the category of telephone services since it is not a charge recovered by the telegraph authorities for providing of telecommunication services to the subscriber. This clearly takes the IUC outside the service tax levy as far as telephone service is concerned.....