Book keeping
This query is : Open
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.
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.
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.
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.
'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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