Maintenance of books accounts in case of online product selling

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15 Points Posted on 21 April 2020
If someone is showing income on commission basis ( online product selling )
But amt credited in bank including sale price
and Then payment made to supplier in cash after withdrwal
Then how to do accounting in this case
Should I maintain Books of accounts
Can I file ITR under section 44AD as presumptive income ?
Please suggest
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On 21 April 2020 at 23:14 Report
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Quick Summary
If you're selling products online on a commission basis, where the full sale amount is credited to your bank and you then pay suppliers in cash, it's crucial to maintain your books of accounts correctly. This method means you cannot file your Income Tax Return under Section 44AD as presumptive income. Instead, you should adopt a consignment accounting system, treating yourself as a consignee. This ensures profits and losses are attributed to the consignor, while you receive commission as remuneration.

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CA-Final Students
192 Points Posted on 22 April 2020
Commission agents can not file Income Tax Return under section 44AD.
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On 22 April 2020 at 07:44
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15 Points Posted on 22 April 2020
How should I maintain BOA
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On 22 April 2020 at 07:52
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Accountant
148 Points Posted on 01 June 2020
Adopt consignment accounting system. It is an inward consignment to the Con­signee. An inward consignment is the receipt of goods by the Consignee from the Consignor for the purpose of sale on commission basis. Consignee is not the owner of the goods.The relationship between consignor and consignee is that of the principal and the agent. So entire profit or loss belongs to the consignor and consignee receives the commission as his remuneration.

https://www.yourarticlelibrary.com/accounting/consignment-accounts/journal-entries-in-the-books-of-consignee-with-illustrations/50552
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On 01 June 2020 at 07:05
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15 Points Posted on 01 June 2020
Thank you👍
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On 01 June 2020 at 08:31

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