Consignment agent
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 August 2013
The assessee is engaged in Business of trading yarn.
It also engages in Consignment sales wherein it receives 1.5% of value of sales as commission.
However, it bifurcates the commission into two parts-one being commission and other as cash discount (50% each)
The purpose for doing so is to avoid crossing service tax threshold limit.It is not registered under any service category at present.
My query is what is the category of service for such consignment sales made through Principle-agent relationship?
It also engages in Consignment sales wherein it receives 1.5% of value of sales as commission.
However, it bifurcates the commission into two parts-one being commission and other as cash discount (50% each)
The purpose for doing so is to avoid crossing service tax threshold limit.It is not registered under any service category at present.
My query is what is the category of service for such consignment sales made through Principle-agent relationship?
22 August 2013
An agent can not receive any cash discount. The design of the transaction is not correct and legal. The amount received by agent in whatever name it is called, is nothing but commission except the reimbursements.
The service could be said to be a Business Auxiliary service
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
The service could be said to be a Business Auxiliary service
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Supply through E-commerce Operators
- TAN for Partnership
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Relief u/s Section 89
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Specified Profession
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
