Service Tax on SIM cards, Mobile Recharge Vouchers

Service tax is applicable on recharge coupons as the sale is of the airtime and not of any other product. Furter, the practice of recharge coupons has come down, giving way to e-recharge with values being store and transferring through to buying parties through mobile.

Answer 2: 

Service Tax -  Value of SIM cards to be included in value of taxable services; since SIM card are not goods, not liable to sales tax: High Court 
The Kochi High court has pronounced that, SIM card is a computer chip having its own SIM Number on which telephone number can be activated. SIM card is a device through which customer gets connection from the mobile tower. In other words, unless it is activated, service provider cannot give service connection to customer. Signals are transmitted and conveyed through towers and through SIM card communication signals reach the customer's mobile instrument. In other words, it is an integral part required to provide mobile service to the customer. Customer cannot get service without the SIM card.

Consequently, the court held that the value of SIM card supplied by the respondent forms form part of taxable service on which service is tax is payable by the respondent.