The Department of Posts provides a number of services. What is the status of those services for the purpose of levy of tax?
The services by way of speed post, express parcel post, life insurance, and agency services provided to a person other than the Government or Union territory are not exempt. In respect of these services the Department of Posts is liable to pay tax without application of reverse charge.
However, the following services provided by the Department of Posts are not liable to tax.
(a) Basic mail services known as postal services such as post card, inland letter, book post, registered post provided exclusively by the Department of Posts to meet the universal postal obligations.
(b) Transfer of money through money orders, operation of savings accounts, issue of postal orders, pension payments and other such services.