S.T. Circular No.46/09/2002
Government of India
Ministry of Finance & Company Affairs
Department of Revenue
Central Board of Excise & Customs
8th August, 2002.
Subject: Services provided by BSNL to basic/cellular telephone service providers – regarding.
I am directed to say that doubts have been raised regarding recovery of service tax on certain services provided by Bharat Sanchar Nigam Ltd. (BSNL) to Basic Telephone Service Providers (BSTP) and Cellular Mobile Service Providers (CMSP). References have been received from the Cellular Operators Association of India, New Delhi, and the Department of Telecom (DOT). The services relating to which doubts have been raised are the following:
“Inter-connection link charges”. These are charges relating to interconnectivity provided between the basic / cellular telephone providers and the BSNL/MTNL exchanges. This enables the private basic telephone operators or the mobile service providers to access BSNL telephone lines and vice-versa. This interconnection can be through a cable owned by the BSNL; in which case a monthly/annual rent is charged. If the cable has been laid/provided by the private basic/cellular telephone service provider no rental is charged by BSNL.
Rentals for junction links”. These relate to charges for using junction links of the BSNL/MTNL from one exchange to another.
“Port charges”. These are something like entry charges for allowing access into the BSNL network.
“Infrastructure charges”. Sometimes the basic as well as cellular telephone service providers need space to keep their own equipments to facilitate the interconnectivity. This space, when provided by the DOT, a rental is covered from them by the DOT.
Receipt of this Circular may please be acknowledged.
11. Hindi version will follow.