Way of Accounting for Toll Gate user fee collection
This query is : Resolved
04 June 2011
hai,
we are construction company, we have taken a project from NHAI to collect User fee.
a) our contract is to purely for collection
of user fee only.
b) Irrespective of Collection, we have to pay
to NHAI per week a fixed amount for a period of one year.
Q.1) we are not aware how to acccount these transaction..
Q.2) How to recognise the income ?
a) user fee collected from vehicles or
b) difference between amount paid to
NHAI and User fee collected ?
Q.3) How to recognise the Expenses ?
a) amount paid to NHAI or any thing..
we are construction company, we have taken a project from NHAI to collect User fee.
a) our contract is to purely for collection
of user fee only.
b) Irrespective of Collection, we have to pay
to NHAI per week a fixed amount for a period of one year.
Q.1) we are not aware how to acccount these transaction..
Q.2) How to recognise the income ?
a) user fee collected from vehicles or
b) difference between amount paid to
NHAI and User fee collected ?
Q.3) How to recognise the Expenses ?
a) amount paid to NHAI or any thing..
05 June 2011
Revenue should be recorded as per AS 9 revenue recognition , u can recognise revenue on weekly basis when fees is received and for charges paid to NHAI provision should be provided for...and for exp. Accrual basis may be followed...others members opinion r invited...Regards Sumat
07 June 2011
Explain more about your agreement..you make clear that what is your profit element in this transaction. Is after payment to NHAI all amount is yours then book whole as a revenue when it accrue to you on real time basis
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
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- Rental income gst and it purpose
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Gift Received from nonblood relative
- Management System (IMS)
- Experts need help
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
