Rev. Rul. 56-319

A company furnishes a television program service over wires leading from its central receiving antenna to premises of subscribers, charges for which, including installation of wires from the central receiving antenna to such premises, are taxable as amounts paid for wire and equipment service. See Revenue Ruling 88, C.B. 1953-1, 467. The company also sells television sets at retail and makes a reduction in the established installation charge for the wire services where a new subscriber purchases his television set from the company. Held, if the amount charged for the television set is no greater than the company's established selling price for that set to customers who do not receive the installation service, the reduction in the installation charge will be considered a bona fide reduction for purposes of the tax. In such event, the tax will apply to the reduced charge.