22 December 2009
Dear sir I want to know the suitable head for accounting entry. My company decided to pay back to the sale executive 50% of the recovery of old oustanding he deposit. and company will keep 1000 per case for new delivery and remaining amount will be payback to executive. The executive have to settel all his expenses, salary, market scheme, sales promotion within the amount company had paid to him. I have a problem that againt which expenses head I have to reimburse him. 1) recovery expenses.(bcos all the schemes and personal expenses will be paid through the executive) 2) Commission (TDS problem - the executive cant bear it bcos after deduction it is hard to expend the remaining money in market.) 3) Incentive (Same TDS problem)
22 December 2009
agree to Mr. Surendra sir. Its not recovery exp. when you pay additional it should be called add.commission, incentive or promosion dont say its a recovery exp. TDS will applicable on it.
CAclubindia
