accounting treatment

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2010 Business: Clearing & Forwarding agent
total receipts > Rs. 40,00,000
very low margin on receipts
comm. income ranging between 4 to 5 lacs
should i treat the diff between receipts and payments as commission ?

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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06 August 2010 You must specify...what are the items that are included in receipts & what are included in payments, then only a clear answer can be given.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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06 August 2010 You must specify...what are the items that are included in receipts & what are included in payments, then only a clear answer can be given.

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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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06 August 2010

You are not engaged in any purchase or sales; you are engaged in service sector.

Hence; you may record only commission as your income.

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2010 payments are made to the Shippers for booking space and receipts are related to the bill amt recd from the customers after deducting TDS...