Discount and comission

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Querist : Anonymous

Querist : Anonymous (Querist)

08 June 2017 Dear sir,

We have purchse some service from 2diffrent vendor..one has given comission nd charge tds..second has given discount but did nt charge tds...so can you pls explain what is difference between both invoice for accounting??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 June 2017 1 In case of commission account only the commission income and TDS. Need not account purchase and sales you are only agent here.
2 In case of discount account the purchase and sales.

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2017 Please explain sir i didnt get you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 June 2017 In the first case you are an agent selling the goods and you are entitled for a commission for which TDS is applicable.
In the second case you are buying the goods and selling it here you are earning profit.

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2017 No is both case we are purchasing the service..now i i want to know what is the difference in discount and comission

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