Meaning of Turnover in VAT

Querist : Anonymous (Querist) 21 May 2010 This query is : Resolved
Dear All,

what is meaning of turnover as per as vat rule can i mention such as goods which is comes under the service tax, for example if I purchas SIM Card, Recharge Coupon & connection where service tax mention on the bill and sell to customer, can i assume the above itemes tretad as goods and show in turover in vat in exepted sechudle.

Plz give u r valuable advice in this regards with VAT Section.

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AMIT BAJAJ ADVOCATE (Expert) 22 May 2010
In relation to VAT for proper meaning of turnover you should refer to the definition of turnover given in the concerned state vat act.

As a general rule turnover for VAT should mean and include sales of goods only or sometimes also the purchase of some goods (where Purchase Tax is applicable) and not service charges for any service.

Querist : Anonymous (Querist) 23 May 2010
yah!!! i agree with u but still my confusion is not clear about recharge coupoon, sim card becasus sim card also goods which is made from electronic device and recharge made from paper

AMIT BAJAJ ADVOCATE (Expert) 23 May 2010
Recharge coupons represents the value for which telecommunication services are available. Similar is the case with the SIM Card which is also a mere telecommunication service provider device.

I dont know which State VAT Act is applicable to you but atleast here in Punjab its considered as a service and no VAT is applicable on Recharge Coupons or SIM Cards.

Moreover The turnover arising from sale of sim cards or Recharge coupons will be turnover of the company of whose recharge coupons or sim cards are, your turnover will be the commission received on such sale

Querist : Anonymous (Querist) 25 May 2010
Thaku for giving the valuable information

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