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Originally Posted by DeSmOnD dAvId
I feel this is pure crap. They cannot tax like that, why can't we be free to communicate with whoever we wish to. It would just like using my landline.
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Government has the Sovereign right to tax any service being provided by any person if it is provided in the Service Tax Laws. It is similar to Excise Duty which is paid on manufacture of many goods - only here the tax is on the service.
Voice Communication is one of the services that is covered in the Service Tax ambit and it is perfectly legal for the government to tax it.
However the only roadblock has been the fact that these service providers are not domiciled in India and not registered to operate and therefore have been avoiding paying any tax, which is now going to change.
Most likely government is going to tax only PC to Phone Calls for which the service providers charge and not he PC to PC calls which are currently free.
The Logic is that PC-Phone call is just like any other Phone call that you make and as you pay for the PC-Phone Call similar to Phone-Phone call they tax it.