1) I have one Non IATA Travel Agent(Say X) he is buying Air tickets from Go-Air or from some other IATA and non IATA agents(Say Y ) the bill consist of detail as under eg. Ticket Amount Rs.50,000 Less: Handling Chg. Rs. 2,500 Add: Service Tax Rs.5,150 Add: TDS on H.Chg. Rs. 283 --------- Net Due Rs.52,933/-
For This X paid the amount by Ch. To Y Rs.52933/-
Now X issue this ticket to (Say Z ) and charged Rs.55,150/- which he gets from Z by way of Ch.for Rs.55,150/-
Now what will be the accounting entry in books ( Whether this will be sale and purchase of ticket or commission income suggest me ) is there any procedure for travel agents to book entries.
2) what will be the amount of turover for the purpose of TAX Audit, Commission Amount or Sale Amount
3)Is Travel agent is cover under the Provison of U/s 44AF for for payment of income tax if its turnover is not exceeding for Tax Audit under Income Tax ??
30 June 2016
When you receive or paid amount you debit or credit Party account. e.g payment made to airline then Debit Airlines and credit Bank. Since airline and customer are current asset/ liability you may show them in Sundry Debtor/ Creditor head.
CAclubindia
