Basically, our company is a railway infrastructure co., where we undertake railway contracts, before we receive the contract we need to pay 10% of contract value as a deposit, out of that 2% will be paid by us & balance 8% will be deducted by railways at the time of generating invoice, now my question is that 8% is to be considered as sales or it should be treated as deposit only?
01 April 2019
But In every bill generated by railways, they show the actual sales then deduct balance security deposit & TDS in that where that deposit will be credited to us after a year. The amount paid by them once sales have done is the value after deducting TDS & deposit which is immediately after the generation of bills.
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