Thursday, October 12, 2006

Airtel Charged for: " Selling photons "


OFC operates on light energy, which is artificially created by the OFC providers and sold to customers for the purpose of data transmission and information, on the OFC broadband line. Without such energy, data or information cannot be transmitted.

Whoever sells light energy is liable to pay VAT as it comes under the category of goods, and hence its sale constitutes taxable turnover attracting VAT at 12.5 per cent


[NEWS:Hindu]

This is ridiculous !!! even the cu is also resending the data back so it's no more a unidirectional transfer,ideally the ISP is giving the light and getting it back.

It being a Value added tax , to be precise only the diffnl 1's (not all 1's) should be taxed and at any rate , 0's should never be charged.

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