agreement the
distributors were required to store the SIM Card and Recharge Coupons
in such a way as to clearly indicate at all times that ... prepaid SIM
Card/Recharge Coupons were owned by assessee. They were not
allowed to remove, obscure or delete in marks placed on prepaid SIM
Card
passes to the distributors the moment they take delivery of the recharge coupons or
the e-top-up is credited to their account; having taken ... premise, it was argued that the supply of
starter kits and recharge coupon / vouchers are in the nature of products /
commodities. The A.O. observed
postpaid services. The prepaid services are in the form of recharge
coupons and SIM cards. In postpaid connection, the SIM card is given
free ... margin in respect of prepaid SIM cards and coupons was 20%, recharge
coupons and E-topup at 4%, PCO SIM cards and coupons
premises through its distributors by selling to them Starter Pack and Rechargeable Coupons which is commonly known as "SIMCARD" and pre-paid Card ... regarding post-paid Card Mobile holders). These "Simcards" and rechargeable coupons were purchased by the distributors/franchisees appointed by the assessee
payments. According to the assessee the starter kits and the recharge coupon
vouchers are sold to its various distributors as per the terms of business ... Assessing Officer
further noticed that discounts on pre-paid SIM Cards/recharge coupons had
already been held to be subjected to TDS as 'commission
branded
products of the Company viz. mainly Starter Packs and Rechargeable coupons
viz. SIM Cards and Prepaid coupons. The assessee i.e. M/s Vodafone ... paid to Cellular companies to sellers of the starter packs and
recharged coupons for Cell phones is one of the areas recommended
starter pack and pre paid talk time by way of recharge
coupons, electronic top up, Internet or any other mode. Thus, the assessee ... sale of pre-paid talk time.
The assessee was selling the recharge coupon / vouchers and starter pack to
the customers through the net of distributors
business the assessee had appointed distributors for prepaid cellular
connection and recharge coupon. The market price of said prepaid card of
cellular connection and recharge ... time of selling its
prepaid cellular connections and recharge coupons to the distributor in the form
of discount / commission on the market price, the prepaid
assesse has no discretion in fixing percentage of
discount/ commission on recharge coupons but the service provider
4 ITA 821/JP/16_
M/s Chocopack ... distributorship of Idea recharge cards. The issue involved in case of the
assessee is in respect of sale of recharge coupons and not the sale
concerned,
appellant took the stand that the supply of Sim Card, Recharge coupons
I.T.A. 1742/09 & conn. 3
etc., under the prepaid ... same transaction i.e. sale
of Sim Cards and Recharge coupons through distributors under the
"prepaid scheme", the assessee's predecessor namely
