Amount to be considered for sales
This query is : Resolved
09 February 2016
Hi all,
Let's consider an example. I am a e-commerce vendor. The selling price of the product is Rs.90/- Commission for placing the product amazon Rs.10/- So actual selling price of the product sold online is Rs.100(90+10). Amazon will collect the amount from customer Rs.100/- deducts Rs.10/- commission and pay us Rs.90/- The sales entry to be passed is
Amazon a/c Dr. Rs.100
To Vat/Cst Sale Rs.95 and Commision to Amazon a/c Dr Rs.10
To Output CST/Vat Rs.5 To Amazon a/c Rs.10
Here I am paying CST/Vat on Commission paid also. Can i avoid paying Sales tax on the commision amount? If Yes, how can i avoid it?
Let's consider an example. I am a e-commerce vendor. The selling price of the product is Rs.90/- Commission for placing the product amazon Rs.10/- So actual selling price of the product sold online is Rs.100(90+10). Amazon will collect the amount from customer Rs.100/- deducts Rs.10/- commission and pay us Rs.90/- The sales entry to be passed is
Amazon a/c Dr. Rs.100
To Vat/Cst Sale Rs.95 and Commision to Amazon a/c Dr Rs.10
To Output CST/Vat Rs.5 To Amazon a/c Rs.10
Here I am paying CST/Vat on Commission paid also. Can i avoid paying Sales tax on the commision amount? If Yes, how can i avoid it?
09 February 2016
commision is a system ( expenses) for your sales promotion, and you have to pay VAT/CST on gross amount
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