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accounting entry of sale to franchaisee.

This query is : Resolved 
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(Querist)
05 April 2008 Respected sir,
i am having a query regarding the sale to franchaisee, the details are as follows.
Rs.
1. sale 100000
less: vat @ 4% / 104 4000
Net sales 96000

7% comm on net sale 6720
service tax on comm 831
reimbursement 80000
octroi 2000
total deduction 89551

net recievable 6449
(i.e. net sales -
total deductions)

further clarifing that the above amount we are recieving per month from franchaisee.
with the above information i want to know that
1. is it service tax is chargable on 7% commission & if it is yes than under what service head.
2. is i have to deduct tds on Rs. 80000/- monthly reimbursement.
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S.Srinivasaraghavan

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S.Srinivasaraghavan (Expert)
08 April 2008 1. Please clarify what is this commission for
2. What is this reimbursement amount for?
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biren thakkar

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biren thakkar (Querist)
08 April 2008 The Commission is for sale of goods in the shop of franchaisee.
The reimbursement is for the minimum guarantee we have to pay at the end of every month.
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biren thakkar

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biren thakkar (Querist)
08 April 2008 The Commission is for sale of goods in the shop of franchaisee.
The reimbursement is for the minimum guarantee we have to pay at the end of every month.
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Taranjit Singh

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Taranjit Singh (Expert)
27 September 2009 If this query is still pending then please post it again by updating......Good wishes.....or you can also send me a PM.
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Taranjit Singh

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Taranjit Singh (Expert)
27 September 2009 If this query is still pending then please post it again by updating......Good wishes.....or you can also send me a PM.
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