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 andSUN]

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

Debate on VAT Applicability for Recharge Coupons: Are They Exempt Sales or Taxable Transactions? Referencing DVAT Tribunal Decision. A dealer in the business of selling cellular phones and recharge coupons inquired whether recharge coupons should be declared as exempt sales in VAT returns, as they are considered a transfer of services rather than a sale. One respondent stated that recharge coupons are chargeable to DVAT, referencing a DVAT Tribunal's decision. Another argued that recharge coupons are not subject to sales tax or VAT since they attract service tax. A different perspective suggested that the sale of recharge coupons is taxable as they are not services provided by the dealer. However, this viewpoint is not widely accepted by the state government.