Composition Scheme

You can change from next financial year only, provided total sales is intrastate.... (but not now)

Thanks sir but as per you said we can only purchase made from Intrastate i.e., with in state and we cannot claim input that's your point right sir and we have to do file quarterly basis and for TO we need to calculate 1% is it correct sir.

My question is that they are like commission agents i.e., they got commission for the sale of bikes its related to service for this can we convert regular into composition? 

Sir/Madam

I need information about C & F agents accounting process Once i received monthly statement from suppliers they mention Discounts like Cash Discount, TGT, AGT, AI as well Freight charges and also we raise the expenses invoices relating to expenses we made on the behalf of company like office expenses, godown rent, computer operator salary. and also they give non trading transport charges,  but am really confused how to records these in books of accounts as they deducting these amounts in their sales invoices. I wanted to know that weather these are all comes under assets side or to the indirect expenses. If it comes to assets side then should i reverse the entry again or what please let me know.

Please explain me with entries in the books of accounts (Tally ERP9)

For your second query, please clarify each entry with your Principal;  as some of them directly reimbursed by their client is debited to client's account, and the one which is expended for own business are debited to direct expenses heads. Nothing as such from assets side. So each expense will be treated as per its criteria, which cannot be explained in short.

SECONDLY IF ONLY COMMISSION AGENT,  THEN THE SCHEME NOT APPLICABLE, BUT THEY MUST BE RAISING TOTAL AMOUNT TAX INVOICE DIRECTLY TO THE CUSTOMER, AGAINST THAT MUST BE RECEIVING THE SAME FROM DISTRIBUTOR. IF THAT BE THE CASE THEN THEY CAN OPT FOR THE SCHEME.

Sir as our client is sub dealer of two wheeler's and they will get commission on sale of two wheeler's and they also used to sales spares parts of two wheeler. But as you said about raising Invoices for their customer, directly Head office will raise Invoice on behalf of our client to their customer they just collect the amount from customer and transfer to head office account by bank.

Sir take example

ABC is Head Office and XYZ is Sub-dealer

if XYZ made sales of Vehicle then they cannot made any invoice to their customer but ABC will generate Invoice of XYZ customer for this XYZ will get commission. 

If XYZ made any sales of Spares then they made invoices for their customer and also for Labour Charges.

For your second query, please clarify each entry with your Principal;  as some of them directly reimbursed by their client is debited to client's account, and the one which is expended for own business are debited to direct expenses heads. Nothing as such from assets side. So each expense will be treated as per its criteria, which cannot be explained in short.

Sir,

As company reimbursing all expenses made by our client in their Ledger statement. For this how would i record entries in books i.e., tally. Should i rise any Invoice to those expenses made on behalf of Company if yes then how because these are all expenses i.e., Office Exp, Transportation, Courier, Rent, Salary like this

M/s. XYZ being commission receiver, cannot opt for composition scheme.