08 January 2019
XYZ entered into verbal agreement with ABC to sale exempted goods(agri commodity) 100MT @ 50/MT as on 1/1/18 with ready delivery. on 10/1/18 ABC want to cancel agreement and ready to pay differential amount. Market rate as on 10/1/18 was Rs.40/MT. Total amount received by XYZ ltd was 100*10(50-40)=Rs.1000.
10 January 2019
Sir, in my humble opinion it will be taxable as a supply of tolerating an act or situation. Thanks and regards CA Shubham Sharma Contact No.-9462302922 email-shubham.vnv@gmail.com
CAclubindia
