How to do Accounting for the service

Srikanth (student) (44 Points)

25 May 2010  

One of my client has two firms 

1.Advertising agent  for Hindi Milap News Paper  and  2.Printing & Designing 

a) With respect to Advertising Agency he collects bill from the client and he pays the same after deducting his commission to the principal.

b) The Bill value issued by hindi milap to my client is same (equal to) to that of bill issued by m client to his customer.

c) He does designing & DTP work  incase of above mentioned business

What is the method of Accounting ? Is Service Tax Applicable to the Agent (Total Receipts is Rs.18 Lakhs) ?

 

With Respect to Priniting & Designing

My client  takes the order for printing and designing and get it done from third party. 

Few Clients provide raw material like Cards,papers etc., and in few cases my client provides to the 3rd party ( printer )

He does designing & DTP work  .

What is the method of accounting ? Is Service Tax applicable for the Agent .

 

Does Printing & Designing is exempt under service tax or not - Can you provide me the provisions.