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Mobile recharge

Sayantan Datta (Article Clerk) (63 Points)

13 June 2014

when we purchase a mobile recharge card it has 3 part..1) talk time ..2 ) peocessing few...3 ) service tax....but when it offers 'Full talktime ' offer then where is the Service Tax part goes ???

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5 Replies

JAINENDRA JAIN (ACS/CA) (1668 Points)
Replied 13 June 2014

For service twx purpose it is considered as inclusive of service tax.

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CS Nadeem Ahmed Siddique (Company Secretary) (354 Points)
Replied 14 June 2014

Even In case of full talktime you need to pay the service tax. suppose you are purchasing value worth 222 now this is service tax inclusive but it is the discretion of operator companies to either give you full talktime or extra talktime on such amount.

CA VIRAL SANGHVI (Finance head) (681 Points)
Replied 14 June 2014

it is inclusive of service tax

(Guest)

service tax is applicable on full talktime offer also.

But it is paid by our operator company like Airtel Idea on behalf of us. They bear the service tax for attracting us so that we would make big recharges like 120 / 555 / 786 etc.

you will never find full talktime on recharge of Rs. 10 because the operator will not pay service tax for us for this small amount they want us to spend money more thats why they offer it only on big recharges.

Got it?

Arif Ali (Apt Co Advisory) (1230 Points)
Replied 15 June 2014

it is inclusive of service tax. and in this case service tax burden bear by operator like airtel, idea, etc. Meaning thereby it is paid by tel operator on from own pocket on behalf of us.