Accoutning Treatment
This query is : Resolved
CA KALPESH LAKHANI
(Querist)
23 December 2019
One of our Client, having status of Private Limited Co., doing business of online balance transfer to the venders. The company first received Cash/Bank from their all vender party and in turn the company transfer the balance in wallet of the vender A/c.
Quary..
1.Should the Cash/Bank amount received from vender be considered as a turnover in P & L A/c?
2.or only commission received from the wallet company is to be treated as direct income and not to shown the cash turnover in p& L A/c?
3.Since company is liable to to pay GST only on commission invoice issued to wallet company, now if we show the turnover of Cash/Bank (which is not liable to GST) department may raised the quary, that your turnover is more in p&l A/c compair to 3B??
Quary..
1.Should the Cash/Bank amount received from vender be considered as a turnover in P & L A/c?
2.or only commission received from the wallet company is to be treated as direct income and not to shown the cash turnover in p& L A/c?
3.Since company is liable to to pay GST only on commission invoice issued to wallet company, now if we show the turnover of Cash/Bank (which is not liable to GST) department may raised the quary, that your turnover is more in p&l A/c compair to 3B??
14 June 2020
Tax needs to be paid on only Income like in your case on commission.
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