E RECHASES & CARD RECHASES

[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

SIM Cards and Recharge Vouchers Exempt from VAT and Service Tax in India, Clarified by 2012 Notification An individual inquired about the tax liabilities applicable to mobile recharge and card sales, specifically regarding VAT or service tax in India. A response from a chartered accountant clarified that SIM cards, recharge vouchers, and related services are not subject to tax under specific sections of the Andhra Pradesh VAT Act, 2005, as per a ruling by the Andhra Pradesh High Court. Additionally, selling agents or distributors of SIM cards or recharge vouchers are exempt from service tax following the introduction of a negative list, as outlined in a 2012 notification.