gross turnover

[d.v. gupta]

A dealer is in business of slae/purchase of cellular phones, rechage coupns etc.whether the dealer should declare the sale of rechage coupn as exempt sale in its vat return. It is wirthwhile to note that rechage coupn is not subject to sales tax as no sale, but transfer of services only.

[YAGAY and SUN]

Recharge coupan is chargable to DVAT.  Even there is a DVAT Tribunal's adjudication in favour of revenue department.  Please check with your consultant.

[DR.MARIAPPAN GOVINDARAJAN]

Recharge coupon is not subject to sales tax or VAT since service tax is collected for such coupons.

 

 

[Vijay Chitte]

As per my view, rechage coupan sale/purchase by dealer is subject to sale tax only, Being as a dealer he is not providing any services to cutomer. Basically, actvity of dealer is, recharge coupan buying in wholesale and selling in retail.

Contrary view is that, recharge coupan is acknowlege of receipt of money in advance for providing telecom service in future is actionable claim and hence not subject to sale tax.

Actually, this aspect is not accepted by the state government.

[DR.MARIAPPAN GOVINDARAJAN]

In many cases the Tribunals endorsed the second point expressed by Shri Vijay Chitte.

AI Summary

Taxability of recharge coupons: dispute over VAT treatment with authorities and tribunals reaching conflicting conclusions.
Whether sale of prepaid recharge coupons by a dealer is subject to VAT is contested: one view treats wholesale purchase and retail resale by a dealer as a taxable sale, while an alternative view treats coupons as advance receipts for telecom services or actionable claims not liable to VAT. Tribunal decisions and administrative positions conflict, with reported rulings both endorsing VAT chargeability and supporting exemption; dealers should check local rulings and seek advice when declaring recharge-coupon transactions in VAT returns.