Industry & Economy
-
Taxation
Money & Banking
-
Information Technology
Maintenance and repair services for ATMs to be taxed
K.R. Srivats
New Delhi
,
Jan. 23
THE Finance Ministry has held that maintenance and repair services for Automated Teller Machines (ATMs) would attract service tax.
The Central Board of Excise and Customs (CBEC) has recently given a clarification to this effect, informed sources said.
The board held that ATMs are not "computers" but are computerised machines.
"Computers are essentially data processing machines and their function is to process analogue or digital data.
There may be machines, which use such processed data too, but their principal function is not processing of data per se. They use such processed data for performing independent functions. These are not computers but computerised machines," the CBEC said.
ATMs are not "computers," "computer systems" or "computer peripherals" and their maintenance and repair would not fall under the board's exemption notification of August 21, 2003, it added.
The Union Government had on August 21, 2003 announced that "taxable service provided to a customer by any person in relation to maintenance or repair of computers, computer systems or computer peripherals" is exempted from service tax.
More Stories on :
Taxation |
Information Technology
Article
E-Mail
::
Comment
::
Syndication
::
Printer Friendly Page
|
