Gross receipt

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2013 Dear Sir,
Suppose a flexi recharge retailer paid Rs. 97/- to telecom company and that company transferred Rs. 100/- talk time in his a/c.
Then that retailer sold that talk time to customers for Rs. 100/-.

Thus, the retailer saving of Rs. 3 would be termed as commission or profit?

If it is commission then retailer gross receipt would be consider at RS. 3/- only
or
his gross receipt would be consider at Rs. 100/-.

Please clarify.

CA Kapil Verma

CA Kapil Verma (Expert)
Follow

03 June 2013 treat it as commission only.

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2013 While filing return, I should fill Rs. 3 as gross receipt
or
I should fill Rs. 100/- as gross receipt?

Upgrade to CAclubindia Pro. Subscribe Now!

CA Kapil Verma

CA Kapil Verma (Expert)
Follow

03 June 2013 show it Rs 3/- only.

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2013 Suppose in future, department officer ask about the bank a/c transactions, where RTGS transactions in favour of company will be reflecting regarding the flexi purchase. Then how to persuade him that gross receipts are only Rs. 3/-.

CA Kapil Verma

CA Kapil Verma (Expert)
Follow

03 June 2013 The mobile recharger just work as a agent to the mobile company.

He received money on behalf of Mobile company.

and reimbursed the same to company after deduction his commission.

Hence amount Deducted is commission and Gross Receipt is Rs. 3 Only.

CA Kapil Verma

CA Kapil Verma (Expert)
Follow

03 June 2013 The mobile re-charger just work as a agent to the mobile company.

He received money on behalf of Mobile company.

and reimbursed the same to company after deduction his commission.

Hence amount Deducted is commission and Gross Receipt is Rs. 3 Only.