Consignment sale impication
This query is : Resolved
Raghav Agrawal
(Querist)
21 June 2018
We are CNF agents present in Odisha of a pharaceutical company based in Hyderabad, In our drug license and GST no. we have been billing to the distributors present in the state, When the company is billing to us we are getting the material on IGST basis and when we are billing to the customers it's on CGST / SGST.
The GST part is clear, my question is what would be the implication on the Income Tax for the CNF agents, does he have to show the turnover in his files? the Turnover is more than 1 cr
The CNF has filed the 3B every month, and for executuing the whole process company is provinding a certain aount of comission. WE are just the custodian of the material, wheatsoever payment comes from the distributors the whole amount is transfferd to the pharmaceutical company .
I would request you to kindly guide how should we proceed with our income tax filings and the methord of operations.
The GST part is clear, my question is what would be the implication on the Income Tax for the CNF agents, does he have to show the turnover in his files? the Turnover is more than 1 cr
The CNF has filed the 3B every month, and for executuing the whole process company is provinding a certain aount of comission. WE are just the custodian of the material, wheatsoever payment comes from the distributors the whole amount is transfferd to the pharmaceutical company .
I would request you to kindly guide how should we proceed with our income tax filings and the methord of operations.
CA R SEETHARAMAN
(Expert)
21 June 2018
Show only commission income as your turnover.
Raghav Agrawal
(Querist)
21 June 2018
Since CNF has filed in 3B and pan card no is linked, won't the income tax department raise a question ?
So in tally we shouldn't account the GST details nor the receipt of payments of the pharmaceutical company ?
So in tally we shouldn't account the GST details nor the receipt of payments of the pharmaceutical company ?
CA R SEETHARAMAN
(Expert)
21 June 2018
Yes income tax department will raise query and can be replied as we are commission agent but as per GST we have to show total sales.
CA R SEETHARAMAN
(Expert)
21 June 2018
You account in tally as sale receipt of pharmaceutical company.
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