28 April 2012
Ms Karuna, As per the schedules and connected notifications in Karnataka Sim cards are chargeable at 5%.There is a case law also on this item. Iwill refer and let you know tomorrow.If you are in any other state please tell me.(See entry 53 of III sch and connected notification entry no 28) MJK MJK
29 April 2012
“Honorable Supreme Court” in case of IDEA Mobile Communication Ltd. versus C.C.E & C. Cochin Civ. Appeal No. 6319 of 2011 dt. 8/4/2011, affirmed the finding and reasoning in the judgment and order passed by the “Honorable Kerala High Court regarding the levy of service tax on the value of SIM Cards sold by the Service provider”.
2. It is held by AP high Court in case of Bharti Airtel Vs. Asst. Comm. that, 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 Sales Tax. Considering the above and other judgements SIM card are liable for service tax and may not be liable as sale.
CAclubindia
