Can anyone elaborate on the applicability of VAT on Prepaid Services Distributor(Telecom)....Is it liable to Vat or Servise TAX?
Also give inputs if any on their accounting.
For Example If Mr. A is a PPEPAID DISTRIBUTOR of VODAFONE then on payment of Rs.5,00,000 he gets Rs.6,00,000 balance which he inturn passes on to retailers.
Now my question is wether when Mr. A provides Credit to retailes then he is liable to VAT or Service Tax..also how to account the diffrence income of rs. 100000 received from Vodafone wether as Income or as commision...is it liable for TDS deduction?