Reg. § 49.4251-2 Rate and application of tax.
(a) Rate of tax Tax is imposed on amounts paid for each of the following services rendered at the rate specified below:
| Taxable service | Rate of tax (percent) |
|---|---|
| General telephone service | 10 |
| Toll telephone service | 10 |
| Telegraph service | 10 |
| Teletypewriter exchange service | 10 |
| Wire mileage service | 10 |
| Wire and equipment service | 8 |
(b) Amounts paid The term “amounts paid” means the amounts collected for the communication services specified in of this section, without regard to whether the charge therefor is paid or satisfied in money, service, or other valuable consideration. For additional provisions relating to the term “amounts paid” see the section of the regulations relating to the particular taxable service listed in of this section.
(c) Liability for, and return of, tax The taxes imposed by section are payable by the person paying for the services rendered, and must be paid to the person rendering the services who is required to collect the tax and return and pay over the tax.
[T.D. 6664, 28 FR 7252, July 16, 1963, as amended by T.D. 8442, 57 FR 48186, Oct. 22, 1992]