Buying for Resident TOT or VAT dealer is not liable for VAT, No credit for taxes paid by the agent

Description:             A.R.Com/61/2008.                          Dated : 5-3-2011.

                        Ref: 1) CCt’s Ref.No: PMT/P & L/A.R.Com/2005, Dated 13-4-05.

While acting as a buying agent on behalf of Resident Principal, is not liable to pay any tax whether the resident principal is a TOT dealer or a VAT dealer. Therefore, the question of the resident principal getting credit for the taxes paid by the agent does not arise.

Source : Trade and Taxes volume no 18. Part no.3 march 2011. Page no. 154.