22 April 2009
Lorry(belong to Mr. A) purchased bricks for Rs. 1 lakh and deliver the same in Y's address. I raised a bill on Mr. Y Rs. 1.10 lakhs saying the cost of the bricks and received cheque for Rs. 1.10 lakh from him and after receiving, i paid to Mr. A rs. 1 lakh. Thus i earned Rs. 10K as commission.
Please tell this how i booked this income? Can i booked in my P/L account as transport commission? What will be the treatment of received of Rs. 1.10 lakh in my books? Should i have to booked Rs. 1.10 lakh as sales and payment of Rs. 1 lakh as purchase? If this is to be done then i have to do tax audit and registered for sales tax? Thanks im adv.
22 April 2009
In that case you was working as sales person neither transporter nor agent. tax audit will apply on Rs40 lakh turnover and sales of breaks not attract sales tax.
CAclubindia
