The Supreme Court has dismissed Tata Teleservices' plea challenging the imposition of value-added tax of around Rs 30 crore by the Andhra Pradesh government on the firm's telecommunication services.
The telecom service provider had challenged the Andhra Pradesh High Court order that asked it to pay one-third of Rs the 30 crore, the alleged incurred tax liability, before granting a stay on the recovery of the remaining amount.
The state sales tax authorities had slapped a tax demand of Rs 30 crore on the Tatas during 2005-07 for providing services to subscribers under various heads like value-added services, installation charges, tariffs from leased lines, infrastructural income, recharge coupons and refundable deposits from subscribers.
A bench headed by Justice B N Agarwal, while refusing to intervene in the High Court order, gave time to Tata Teleservices till April 15 to deposit around Rs 10 crore.
Tata Teleservices submitted that it had already paid service tax on certain facilities provided to subscribers and the same were being taxed once again by the sales tax authorities under the Andhra Pradesh Value Added Tax Act.