Sole selling agent

Pvt ltd 624 views 1 replies

CA Final

1368 Points Joined March 2011

In which of the following ways does a sole selling agent appointed u/s 294AA of Companies Act, 1956 functions :

(i) The Co sells goods to sole selling agent and then the sole selling agent sells it to the customers. or

(ii) The sole selling agent acquires various customers on behalf of the company and the sale takes place directly from the company to such customers.

Also

2. Please give reference of a company which has appointed a sole selling agent?

3. How is the invoicing to be done, both for Co and the Agent?

4. Which is the governing section for sole selling agent's under the Companies Act, 2013?

Best regards,

Souvik Ghosh

Replies (1)

Chartered Accountant

1489 Points Joined August 2011

Dear Souvik

Answer 1 ) A sole selling agent is appointed for increasing the sales or improving the market share of the company for a pre-defined area...

A sole selling agent is appointed u/s 294AA for the function (ii) as mentioned by you .

Answer 3) The company will raise an invoice on the sole selling agent for provision of service.

Answer 4) Section 294A

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