Security deposit
This query is : Open
01 April 2019
Hi Everyone,
Question for the day.
Basically, our company is a railway infrastructure co., where we undertake railway contracts, before we receive the contract we need to pay 10% of contract value as a deposit, out of that 2% will be paid by us & balance 8% will be deducted by railways at the time of generating invoice, now my question is that 8% is to be considered as sales or it should be treated as deposit only?
Question for the day.
Basically, our company is a railway infrastructure co., where we undertake railway contracts, before we receive the contract we need to pay 10% of contract value as a deposit, out of that 2% will be paid by us & balance 8% will be deducted by railways at the time of generating invoice, now my question is that 8% is to be considered as sales or it should be treated as deposit only?
01 April 2019
Deposit recovered From Sales , the portion first consider as sales , Realised outcome to be treated as Deposit
01 April 2019
But In every bill generated by railways, they show the actual sales then deduct balance security deposit & TDS in that where that deposit will be credited to us after a year. The amount paid by them once sales have done is the value after deducting TDS & deposit which is immediately after the generation of bills.
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