Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: VAT Audit :: ACCOUNTING STANDARDS :: form 3cd :: cpt :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: VAT RATES :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4%
 
 
Service Tax »
 GST coming soon, but don’t expect quick benefits; rich valuation to stall stocks
 FM Arun Jaitley underlines urgency to pass GST bills in this Parliament session
 Government may table 4 GST bills in Parliament today
 Applicability Of Gst Law On Educational Institutions
 Cabinet clears 4 Bills, GST likely to roll out by July 1
 GST may also impact income tax collections: Experts
 Companies, consultants grope in the dark to meet GST deadline
 Cabinet approves GST, e-commerce cos to pay up to 1% tax
 Cabinet approves supporting GST legislations ahead of 1 July roll-out
 GST: Centralized assessment for service-oriented industries likely
 Tax department to calculate GST’s impact on inflation

SIM cards liable to service tax: Apex Court
January, 11th 2012

SIM card is integral to telecom services, and hence, normally liable to service tax, ruled the Apex Court in its judgment dated August 4, 2011, in Idea Mobile Communications' case.

The only circumstance in which SIM cards could attract sales tax, that is, treated as goods is when they are sold separately, with their buyers being called upon to pay for talk time separately.

This would be the case when cards are sold at convenience shops such as sundry pharmacists, electric repair shop and so on, for say Rs 25 or Rs 50 on which sales tax would have to be paid.

All subsequent amounts paid with respect to the cards thus sold would be towards services, and hence, liable to service tax.

And when the cards are issued along with talk time without being charged for separately, there would be no scope for sales tax as the issue of card is integral to services.

Thus, when a service provider charges Rs 100 on issuance of a SIM card with Rs 50 talk time thrown in, the entire amount of Rs 100 would be liable to service tax. The Idea judgment has thus cleared the air and held a SIM card for it is part and parcel of services except in cases where it is sold and priced separately.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Team

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions