Respected Members I have query for Service tax Input.
Main points of case are:
Client is distributor of Recharge Coupon, Sim etc. Purchase of such attracts service tax, but on sale he is not charging service tax at all. As MRP already includes service tax then he just sold those services at Mrp.
Client is liable for commission for purchases. [More the purchases more the commission]
But problem is that commission is recd in kind. Means commission is recd in form of purchases of sim etc. and same is sold further at Mrp which is actually commission.
Now, is he is liable to input of service tax which he has paid on purchases agnst the liability of service tax payable on commission? [Please note no commission is recd in form of cash or cheque] It is automatically adjusted in the party statement.
CAclubindia
