mother dairy concessionaires income calculation

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Sunil (Querist)
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04 October 2010 Can anybody suggest me how to calculate income of a mother dairy concessionaires (booth operator) because there is no tds liability on mother dairy to deduct from income shown as discount on ivoices raised to booth operators.

If any body have a format please send me...

or i just show sale & purchase according to invoices of mother dairy because not a single asset belongs to booth operator.

Under which head the income should be shown "Other source/PGBP"

What to do about the stock of amterials as on 31st March.

Urgent please help me out............

Maninder Jain

Maninder Jain (Expert)
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05 October 2010 There is one Golden rule whenever you are in doubt in such cases:

You see whther there is principal to pricipal relationship between Mother diary and booth operator

or

Booth operator is acting as merely an agent to mother diary.

In first case the sale made by booth operator is his sales

In second case only commision income is booked.

However in both cases both cases the income is from Business head.

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Sunil

Sunil (Querist)
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06 October 2010 TRHANKS DEAR,
BUT I WANT THE FOLLOWING CLARIFICATIONS BASED ON BELOW SAMPLE SALE BILL ISSUED BY MOTHER DIARY LTD.
SAMPLE BILL DETAILS
Particulars Amount
SALE 100.00
VAT @ 12.5% 12.50
TOTAL 112.50
Less:- Discount 10.00
NET AMOUNT PAYABLE 102.50

SO MY QUESTIONS ARE:-
1) WHETHER THE ABOVE SAID Rs. 10 SHALL BE SHOWN UNDER PGBP OR IOS.
2)WHETHER ALL SALE PURCHASE RECORDS ARE REQUIRED TO BE MAINTAINED OR NOT.
3) WHAT TO DO WITH VALUE OF STOCK LYING AS ON 31st March.

[NOTE:- I HAVE A CASE LAW COPY (ITO Vs MOTHER DAIRY LTD.) ACCORDING TO WHICH ABOVE MENTIONED RS. 10 SHALL NOT BE CONSIDERED AS COMMISSION PAID TO CONCESSIONARIES. HENCE, THERE IS NO TDS LIABILITY ON MOTHER DAIRY. IT IS ALSO ARGUED THAT THERE IS NO PRINCIPAL & AGENT RELATIONSHIP BETWEEN MOTHER DAIRY & CONCESSIONARIES]

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Maninder Jain

Maninder Jain (Expert)
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06 October 2010 Based on your reply there is principal to principal relation between Mother diary & booth operator.

So purchase bill is 102.50.

In P&L show purchase Rs. 102.50

& sales (lats say) 115

So the differnce will be income under business income