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The learned D. Idea Cellular Ltd. The Hon'ble High Court observed as under:.

What is clear from Explanation i of the definition clause above is that commission or brokerage includes any payment received or receivable directly or indirectly by a person acting on behalf of another person for the services rendered. We have already taken note of our finding in BPL Cellular's case abovereferred that a customer can have access to mobile phone service only by inserting Sim Card in his hand set mobile phone and on assessee activating it.

Besides getting connection to the mobile network, the Sim Card has no value or use for the subscriber.


In other words, Sim Card is what links the mobile subscriber to the assessee's network. Therefore, supply of Sim Card, whether it is treated as sale by the assessee or not, is only for the purpose of rendering continued services by the assessee to the subscriber of the mobile phone. Besides the purpose of retaining a mobile phone connection with a service provider, the subscriber has no use or value for the Sim Card purchased by him from assessee's distributor.

The position is same so far as Recharge coupons or E Topups are concerned which are only air time charges collected from the 11 subscribers in advance. Do you have an existing recharge outlet?

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