Accoutning Treatment
This query is : Resolved
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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