selah wrote:
Given that on net call are free I dont think they are subject to any taxes so I dont think they suffer any considerable cost when you call free on net.
VAT is charged on the value provided, not the amount paid, so I suspect they will pay something, unless they can prove that 1. it is a promotion, 2. it is to everybody (non-discriminatory)and 3. has a definite time frame. This offer seems to meet the first two conditions. In terms of the amount to be assessed, KRA is at liberty to determine a fair price to levy the VAT on. I'm not sure how they treat the excise and mobile taxes.
Regarding excess capacity, I think Yu rides on airtel's network, if they pay a flat fee, then they could have excess capacity. If they pay as they go......