Accounting treatment for Sim Card & Recharge card dealer

This query is : Resolved 

03 February 2009 How should the accounts of a person dealing in sim cards and recharge cards be maintained? e.g. A person purchases recharge cards of Rs.100 at Rs.90 from a Company and sells the same at Rs.100. In what manner the difference of Rs.10 be accounted for so as to avoid any provisions of Tax Audit.

03 February 2009 ur purchase will be accounted for of rs.90 and sales will be accounted for of rs.100
difference is the income form which u can deduct expenses

if the sales figure cross rs.40Lacs then tax audit is must there is no other remedy to avoid tax audit

otherwise u can make a new entity and divert some purchase and sales in the name of new entity to escape the provisions of tax audit

rds
cavipingarg
09211804209

04 February 2009 What if the recharge cards are purchased for Rs.100 and also sold for Rs.100 but the Company whose cards are sold, gives the dealer commission separately?




You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries