Vat on recharge coupon

Rashmi (Accountant) (140 Points)

02 March 2013  

 

A MVAT register mobile dealer selling mobile and recharge coupons, he is collecting and paying VAT on mobile items, but he is not collecting or paying any VAT on mobile recharge coupons.  

His previous auditor advised him to collect VAT from the distributor and charge to the customer on recharges coupons, but I have advised him not to collect any tax on recharge coupons.

But his previous auditor says he will have to pay VAT on recharge coupons, as mobile and recharge coupons are billing in  one account.

 

I need your view and suggestions on the above query.

Regards

Rashmi

Have Nice weekend