Sales commission exps

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2014 IF WE MADE PAYMENT FOR COMMISSON TO OUR SALES COMMISSION AGNET FOR HIS SALES COMMISSION IN ADVANCE @ 50% (WHATEVER THE COMMISSION AMT) WITHOUT SALES IN RELEAVANT FINAINCIAL YEAR.CAN WE BOOK THIS COMMSSSION EXPENSE IN OUR BOOKS OF ACCOUNT ? CAN INCOME TAX DPET DISALLOW IT ON THE BASIS THAT SALE HAS NOT BEEN MADE IN RELEAVANT FINANCIAL YEAR.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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16 February 2014 Expense can not be booked because the terms of agreement is based on the sales. Zero sales will result in zero commission. ITD will disallow the expense.
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