Consignment agent
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 August 2013
The assessee is engaged in Business of trading yarn.
It also engages in Consignment sales wherein it receives 1.5% of value of sales as commission.
However, it bifurcates the commission into two parts-one being commission and other as cash discount (50% each)
The purpose for doing so is to avoid crossing service tax threshold limit.It is not registered under any service category at present.
My query is what is the category of service for such consignment sales made through Principle-agent relationship?
It also engages in Consignment sales wherein it receives 1.5% of value of sales as commission.
However, it bifurcates the commission into two parts-one being commission and other as cash discount (50% each)
The purpose for doing so is to avoid crossing service tax threshold limit.It is not registered under any service category at present.
My query is what is the category of service for such consignment sales made through Principle-agent relationship?
22 August 2013
An agent can not receive any cash discount. The design of the transaction is not correct and legal. The amount received by agent in whatever name it is called, is nothing but commission except the reimbursements.
The service could be said to be a Business Auxiliary service
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
The service could be said to be a Business Auxiliary service
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
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
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Is Aadhar PAN linking required for opening bank account?
- Applicability
- Where to show the RCM on Rent paid to unregistered landlord
- RCM - commercial rent paid to URP under GST
- TDS NUMBER SURRENDER
- Application of 115BAC
- Gst Sales of FY 2023-24
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Offsetting interest income against derivative trading losses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
