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Accounting treatment for payment made to bulk sms service

PRASOON BABY (Article Assistant) (31 Points)

07 December 2015

Dear friends,

Please reply me, which account should be debited when a payment made to bulk SMS service provider, these SMS are send to marketing executives in the field, when a sale takesplace.

Thanks and Regards,

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10 Replies

Jaspal Singh (Practising CA) (321 Points)
Replied 07 December 2015

Expenses should be treated as normal telephone & communication charges..

1 Like

Abhishek Satam (financial execetive ) (86 Points)
Replied 09 December 2015

Sir Can we treat is as a Marketing expenses ??

PRASOON BABY (Article Assistant) (31 Points)
Replied 10 December 2015

Hi Abhishek,

I don't know to which head this expense belongs, that's why I post query in the forum. I also think it will add to marketing expense. But here they splitting the expenses fallen under the head marketing dept. to various sub-heads. Any thankyou very much for answer me..

Ragards,

Ankita CWA Final Student (Principle Internal Auditor) (348 Points)
Replied 04 April 2016

we have same exps .

we booked it under sbscripttion charges .

as we paid lumsum amt for specific no of sms

for eg 5000 rs for 25000 sms

shivani verma (Job) (24 Points)
Replied 11 August 2016

whether TDS needs to be deducted on this Expense?? Please suggest

SUNEEL KUMAR (Sr. Accounts & Finance Executive) (163 Points)
Replied 26 October 2016

Telephone & Communication Expenses

PRASOON BABY (Article Assistant) (31 Points)
Replied 16 March 2017

Hi Ankitha,

Thank you for your reply.

Logon Utility (manager) (22 Points)
Replied 30 November 2017

For accounting purpose Bulk SMS service is best option. Bulk SMS service is cost effective & easy to Send SMS.

easy sandesh (2 Points)
Replied 13 June 2018

Nice information about Bulk SMS service, is a service from which anybody can send an ample amount of SMS at the same time also they can market their product to their target audience. Now day’s bulk SMS plays an important role for all the business to promote their product and service.

Social ID (2 Points)
Replied 23 July 2018

Hi All,

Amount should be debited from Main Account when a payment made to bulk SMS service provider, In bulk or individualy also. Depends upon Quantity of SMS you brought from Bulk SMS Providers. TDS Also deducted