Taxability of sale of sim cards

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Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2010 I need clarification regarding the taxability of sale of sim cards. Is is taxable to VAT or Service tax

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 October 2010 VAT is applicable on SIM card sales

Amit Bajaj

Amit Bajaj (Expert)
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17 October 2010 Supply of sim card is not sales it is purely a service since no property in goods transfer by supply of sim cards by the dealer. The similar view is taken by kerala high court in latest case namely Vodafone Essar Cellular vs. ACIT

can see for more at below link:
http://amitbajajadvocate.blogspot.com/2010/09/supply-of-sim-card-is-not-sale-discount.html

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2010 @ Amit Bajaj, Thank you very much for your reply and your link

Gagan Agarwal

Gagan Agarwal (Expert)
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29 December 2010 it will depend on the intention of the party. In case party is purely a trader in sim cards, then it will not be considered as a service.

However, in case party is also a telecom service provider (say vodafone, bharti, idea), supply of sim card with connection may be treated as service. hope it is clarified