Book keeping

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Mrs.Girija Kumar (Querist)

18 September 2019 Sirs, As a Private Limited Company Registered in 2018),
I have plans to export a product ( I have obtained IEC, GST etc.) and to understand the industry, right now I am sourcing buyer from overseas and getting paid for it by the seller.
How to account for the consideration I am receiving from the Seller in the books of accounts and its GST implication and other Income-tax implication.
I shall be obliged if I am guided in this issue.

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN

(Expert)

18 September 2019 Please clarify the whether you wish to know accounting of export sales or any other points since I am not able to understand clarification asked from your query.

Mrs.Girija Kumar

Mrs.Girija Kumar (Querist)

19 September 2019 Apologies. Well, It is like this; Parties involved A B C. A= my company, B= Buyer(Overseas), C=Seller(India) .
'A' hunts for Buyer 'B' from overseas and also hunts for Seller 'C' in India.
All the negotiations are handled by 'A". Once it is agreed by both B and C, C raises PI and B sends money to B.
C exports with all the formalities. A doesn't come in the picture. A does not raise any invoice etc.
On mutually agreed terms, C pays A , 'X' amount. There is no contract or agreement between A and C presently. And also no contract or agreement with B.
Query:
1) When C pays A the 'X' amount, how it is to be treated in the books of account? i.e. commission, consultation charges etc.
2) Impact of GST on the receipt to A
3) Impact of Income-tax on the same.

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