vat and service tax return

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This query is : Resolved

CA LOKESH KHARIWAL (Querist)

25 June 2011 my friend have agency of AIRTEL and he sell etop, recharge and blank sim to retailers. company billing him after deduct service tax on mrp of recharge etc..
is he liable to deduct service tax and vat from his customers, and is he liable for maintain account for vat and service ???

U S Sharma

U S Sharma (Expert)

25 June 2011 company billing him after "DEDUCT service tax on mrp of recharge etc"

what is meaning of deduct here? company has to "charge" not to deduct.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

26 June 2011 As per the provisions of Service Tax it is to be charged and paid. In your friend's case AIRTEl has charged Service Tax and has given you the Bill. Now, your friend is selling it on retail basis. The service tax your friend is to be reduced by the service tax paid to the company and balance he has to pay. If there is no difference between retail price then your friend is getting commission which has got separate treatment.

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