Revenue recognition

CA rahul (BCOM(H) ACA) (725 Points)

08 July 2015  

 

Dear member 

I have one query with regard to revenue recognition

Assesse being a branch office of the Principal company Located outside India and undertake the sales activity with regard to Software (mobile app) available for sale through electronic download from server /website. Since product is available online on Common website of the company so it can be say that Product belong to principal company registered outside India. Since sales collection are carried by India sales team and credited to bank account maintained by the Assesse. Now the issue is whether Branch office located is India can booked entire sales consideration or booked the same based on the percentage after entering the agreement with principal company for allocation of revenue