Sub: Realisation of tax on SIM card.

It has come to knowledge that no tax is being realized under the Assam Value Added Tax Act, 2003 on SIM card. In this connection it may be stated that SIM card is also a "goods" as per definition under Section 2(20)(ii) of the Assam Value Added Tax Act, 2003, hence tax is leviable on SIM Card.

It appears that telecom companies usually charge separately for SIM card in pre-paid connections apart from charging for talk time. In such a case, the charges for SIM card shall be exigible to tax.

As such all ACT / ST's are directed to verify the package offered by such companies and take necessary action to realise due taxes from such companies.

Action taken report may be forwarded to the undersigned within 1 month from the receipt of this circular.

Sd/- Sanjay Lohiya,

Commissioner of Taxes, Assam,

Dispur, Guwahati-6.