Entry Problem

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shaikh aijaz khalil (Querist)

22 December 2009 Dear sir
I want to know the suitable head for accounting entry. My company decided to pay back to the sale executive 50% of the recovery of old oustanding he deposit. and company will keep 1000 per case for new delivery and remaining amount will be payback to executive. The executive have to settel all his expenses, salary, market scheme, sales promotion within the amount company had paid to him. I have a problem that againt which expenses head I have to reimburse him.
1) recovery expenses.(bcos all the schemes and personal expenses will be paid through the executive)
2) Commission (TDS problem - the executive cant bear it bcos after deduction it is hard to expend the remaining money in market.)
3) Incentive (Same TDS problem)

Please suggest me.

Thanks & regards
SHAIKH A.K.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)

22 December 2009 1. This is not recovery expenses.

2. This is additional commission to the sales executive hence it is alike incentive.

3. Why executive cannot bear it; when they are getting enough incentives? Much will be left even after paying TDS.

4. The company should properly explain to convince the executives.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

22 December 2009 agree to Mr. Surendra sir.
Its not recovery exp. when you pay additional it should be called add.commission, incentive or promosion dont say its a recovery exp.
TDS will applicable on it.

shaikh aijaz khalil

shaikh aijaz khalil (Querist)

22 December 2009 Please solve this query

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