Accounting treatment for Sim Card & Recharge card dealer

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Chitra Nair (Querist)
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03 February 2009 How should the accounts of a person dealing in sim cards and recharge cards be maintained? e.g. A person purchases recharge cards of Rs.100 at Rs.90 from a Company and sells the same at Rs.100. In what manner the difference of Rs.10 be accounted for so as to avoid any provisions of Tax Audit.

vipin

vipin (Expert)
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03 February 2009 ur purchase will be accounted for of rs.90 and sales will be accounted for of rs.100
difference is the income form which u can deduct expenses

if the sales figure cross rs.40Lacs then tax audit is must there is no other remedy to avoid tax audit

otherwise u can make a new entity and divert some purchase and sales in the name of new entity to escape the provisions of tax audit

rds
cavipingarg
09211804209

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Chitra Nair

Chitra Nair (Querist)
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04 February 2009 What if the recharge cards are purchased for Rs.100 and also sold for Rs.100 but the Company whose cards are sold, gives the dealer commission separately?

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