Whether sale of mobile rechage via easy recharge will be considered as sale or commision received on sale of vouchers??
3 Replies
Reena Verma
(CA Finalist)
(417 Points)
Replied 02 August 2010
IF THE PERSON SELLING THESE RECHARGE CARDS RECEIVES COMMISION FOR THE SALE, IT'LL BE TREATED AS COMMISSION ELSE SALES IF HE TRADES THESE CARDS.
R.Sankaranarayanan
(Indirect Tax Executive)
(163 Points)
Replied 17 August 2010
If he is registered agent of the mobile networks in the country, whatever commission (margin) he earns will attract service tax. As the mobile EC recharge cannot be proved as actual sale under the sale of goods act, vat/cst will not be applicable.
Debasis
(MBA(Finance) student>>CS)
(86 Points)
Replied 18 August 2010
For example
1. If a VODAFONE mobile Easy recharge executive provides balance to the easy recharge mobile of the dealer(say M/s Sanjana Communications) it is not a sale,the amount gained is a commission for the vodafone executive .it is a purchase for M/s Sanjan Communications.
2.If you are making a recharge of Vodafone mobile Easy recharge from a dealer (say M/s Sanjana Communications,dealing with vodafone,airtel,reliance etc.),then it is a sale for M/s Sanjana Communications..
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