E RECHASES & CARD RECHASES

[Asked by Guest]

Dear sir,

 

Please Explain to any tax liability to eassy recharge mobile &  Card is applicable to vat /service tax , or other tax

 We are oxiexn company eassy recharge and top up card local marketing sales . please help to me

 

Thanks you

 

Anil Sharma

9811697480

[Surender Gupta]

SIM cards, recharge coupon vouchers, mobile telephone rentals on post paid connections, value added services such as ring tones, music down loads, wall papers etc., and proceeds received on sharing of infrastructure cannot be subjected to tax either under Section 4(1) or Section 4(8) of the A.P. VAT Act, 2005. - See  2011 (9) TMI 216 - ANDHRA PRADESH HIGH COURT - THE STATE OF ANDHRA PRADESH Versus M/s BHARAT SANCHAR NIGAM LTD, HYDERABAD

 

Further selling agent or a distributer of SIM cards or recharge coupon vouchers will be exempted from Service Tax after the introduction of negative list. see notification no. 25/2012

AI Summary

Tax exemption for SIM cards and recharge vouchers: distributors also fall outside service tax liability after negative list reform.
SIM cards, recharge coupon vouchers, post paid rentals, value added services and infrastructure sharing proceeds are not taxable under the cited provisions of the A.P. VAT Act; selling agents or distributors of SIM cards and recharge vouchers fall outside service tax liability after the negative list reform and referenced notification, qualifying for service tax exemption.