A dealer X earns commission income by the following method:
A mill Y makes interstate sales to a person Z(contacted by X) for Rs 250000/- and asks the customer to Z to make the payment to X. X in the meanwhile reduces his commission of Rs 12500/- from the invoice amount and makes payment of Rs 237500/- to the mill Y.
SInce X is collecting at one rate and remitting to his principal at another rate do the same qualify as two seperate transactrions and he needs to declare the same under VAT and pay VAT on Diff Rs 12500 in his state?
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