Dear friends
Can Pure agent avail input tax credit on input services .
Eg:X provides Rs.450 lacks of services to B
X acts as pure agent and x satisfy all conditions for pure agent
Total expenditure incurred by x on behalf of B is Rs.4500 lacks
now x got 10% commision on Rs.4500 lacks
In this situation here taxable value only Rs.450 Lacks and the x can take input credit on input services for this out put service .The input service value is included in Rs.4500Lacks
Plese give clarification and give any supporting (if any avilable)
CAclubindia
