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Solution of tax problems on the commission of mobile coupon selling

I am satisfied with your answer of my query

but i sill have a question that is as under :

Q:-

the dealer of the mobile services companies do not make a bill with vat but they deduct the services tax from the amount of the recharge coupon then calculate the commission .

e.g. i have purchased the recharge coupon of BSNL M.R.P. of 55 Rs. qty. 100Nos then they billing as under :

mrp. 55 * 100 = 5500

- *commission @ 3% = 148

bill amount to pay dealer = 5352(commission = 5500 - 10.36% s.t = 4930 * 3% comm. = 148 rs.) in this case we sell the recharge coupon at the M.R.P. and our profit commission of Rs. 148. so, if we treat our account as under : sales amount - purchase amount = our profit and we just pay the income tax ? or other rules of tax not liable for us?

Ans :-

Ok, I understood It means the nature of there business is to provide service so , Because service tax and VAT are indirect tax and your tax Burden will transfer to your customer .

e.g. i have purchased the recharge coupon of BSNL M.R.P. of 55 Rs. qty. 100 Nos. then they billing as under :
mrp. 55 * 100 = 5500
- *commission @ 3% = 148
Bill amount to pay dealer = 5352
(Commission = 5500 - 10.36% s.t = 4930 * 3% comm. = 148 rs.)


5500 @3 % = 165

Because you have sell each coupon at RS. 55

Purchase price + Service tax + your commission

47.82 + 5.698 + 1.48 = RS. 55

So, you need not pay service tax because your company have already paid service tax but , you have to include it in your total income and have to pay income tax and you have to also pay VAT on all other product’s sale .

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Accounting Education: Solution of tax problems on the commission of mobile coupon selling
Solution of tax problems on the commission of mobile coupon selling
Accounting Education
https://www.svtuition.org/2009/04/solution-of-tax-broblems-on-commission.html
https://www.svtuition.org/
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