Thread: sales tax

Hi guys am new to this forum. Checked many of the threads in this forum but I just have a doubt in the way the bsnl broadband bill is calculated with regard to the sales tax. Am using bsnl home 500 plan.

I came to know that only "Sum total traffic" column in the portal website should be taken as referrence for calculating the excess charge that we're to pay and that as long as the "Sum total Traffic" in the last column does not cross 2.5GB am not chargeable for any surplus amount. (If am wrong in my assumptions pls correct me)

Now I want to know how much percentage is the sales tax (in the broadband bill) and what is it based on? Its calculated based on which amount?

Please help me as soon as possible as am a bit desperate now as am ending up paying huge bills due to my ignorance regarding the bill amount calculation and tricks in using bsnl home 500 scheme..

Its not Sales tax dude,
Bsnl provides Broadband Service, so we have to Service Tax to the Govt which is collected by BSNL on your behalf.

Present rate of Service tax is: 12.36(Including Education Cess)


In Home 500 Plan, Any data transfer occured between 200HRs to 800Hrs is not counted, rest all if counted.
So if you exceed 2.5GB limit and you have to pay charge of Rs0.80 per MB

And this service tax is calculated on total billci.e (landline +BB)+S.t.

Service Tax is not added for security deposit .
Also see
http://www.indiabroadband.net/bsnl-b...html#post82142 (Confusion)

Get ADDITIONAL 14digit portalID and
password from your Exchange to check your BB usage,

Guys thanks for the replies regarding sales tax... From the various threads I combed through this forum, I came to know that the charges are levied only based on "Sum Traffic Excluding Night Unlimited(GB)" column in bsnl portal website...

Hence when the "Sum Traffic Excluding Night Unlimited(GB)" column shows up a value greater than 2.5 GB (for home 500 scheme) then we have to pay the misc amount right??????

But when I called up chennai bsnl broadband customer care today they said the bsnl charges are levied based on "Total Volume(GB)" column.. Hey are these customer care guys misguiding me? This leaves me totally confused.. The whole purpose of customer care is defeated.. its "Customer Chaos" rather than "Customer care"!!

Please clarify regarding this...

you dont worry in 500 plan u get 2.5 GB free and unlimited download from 0200 am to 0800 am . when ur bill is prepared night usage is automatically deducted from ur total volume and 2.5 gb is counted as free volume . For remaining volume u have to pay @.80p per mb

Hi memeber "TotallyFandu"
Sorry to trouble you... I just want to confirm 100%...that's why.. So for billing purposes we have to see to it that that the last column in the portal "Sum Traffic Excluding Night Unlimited(GB)" does not cross 2.5 GB right? Am i right?

Because when I google searched in some other forums ppl are severly misguiding others saying "The Total Volume (GB)" is only taken into consideration...

Pls confirm this so that I'll sleep peacefully today... Sorry to pester you dude...

U R RIGHT THAT WE HAVE TO CHECK Sum Traffic Excluding Night Unlimited(GB) COLOUM BUT IN THIS NIGHT CHARGES ARE ALREADY DEDUCTED IF U SEE UR COMPLTE DETAIL DURING NIGHT HOUR WHEN BB IS FREE THEN IT IS TAKEN IT AS 0(ZERO)

U R RIGHT THAT IT DOESNT CROSS 2.5.GB BEACAUSE IN 500 PLAN U GET ONLY 2.5.GB FREE

thank you thank you dude... I'll have a good night's sleep now...

ok my friend

Let me clear some doubts about VAT and Service Tax.

a) VAT is applicable on Goods
b) Service Tax is applicable on, well, Services

VAT rate is different for various class of goods but we shall not discuss this.

Service Tax is uniform for all services @ 12%. This 12% is pure service tax. On the amount of service tax, a 3% surcharge is calculated as Education Cess. For example:

a) Amount of service = Rs. 100.00
b) Service Tax @ 12% = Rs. 12.00
c) Education cess @ 3% on service tax = Rs. 12 x 3 / 100 = Rs. 0.36
-----------------------------------------
Total = Rs. 112.36
-----------------------------------------
Hence for all practical purposes, service tax is 12.36%.

What constitutes a service?
Any invoiced item that is sold which does not deal in physical material goods constitutes a service. An Invoice can have physical goods as well as services. A typical example is a vehicle maintenance and repair invoice. Such an invoice has goods, such as, Spare Parts, Consumables (Oil, Grease, Filters, etc.) and then there is service in form of labour. On the goods, VAT is charged, whereas on the labour service tax is applicable.

In case of BSNL, 99% of the times, everything is Service. But sometimes you may have goods. For example, when you order BB the first time and opt to buy a modem, the modem is a physical item and is chargeable to VAT. Most others such as Landline Rent, Telephone Calls, BB Usage Fee, Excess Usage Charges, etc. are provided as a service and service tax is applicable on these.

Very clear explanations.
Just to clarify,
When u purchase the modem, the modem becomes your property, so its a sale. On this VAT (Value Added Tax - the modiifed form of sales tax) is chargeable.
But the telephone as well as the BB are services provided to u by the telecom company as no property is transfered to u. Certain services have been notified under the Service Tax Act (including telecom). For the total charges billed for such services, the receiver of the service is also required to pay Service Tax at rates declared from time to time (the current rate is 12%).
In addition, for all direct and indirect taxes 3% cess is applicable.

However, the deposits taken by the telecom co. are niether sale nor any service provided.
Hence no VAT or Service Tax is applicable on deposit.

We are gradually moving towards the unified GST i.e. Goods and Service Tax which would replace both VAT and Service tax.

this is good information for all of us

Originally Posted by panchabhut

Very clear explanations.
Just to clarify,
When u purchase the modem, the modem becomes your property, so its a sale. On this VAT (Value Added Tax - the modiifed form of sales tax) is chargeable.
But the telephone as well as the BB are services provided to u by the telecom company as no property is transfered to u. Certain services have been notified under the Service Tax Act (including telecom). For the total charges billed for such services, the receiver of the service is also required to pay Service Tax at rates declared from time to time (the current rate is 12%).
In addition, for all direct and indirect taxes 3% cess is applicable.

However, the deposits taken by the telecom co. are niether sale nor any service provided.
Hence no VAT or Service Tax is applicable on deposit.

We are gradually moving towards the unified GST i.e. Goods and Service Tax which would replace both VAT and Service tax.

thanks for the clarification. ..