Hello members,
Can we accept payment from customers and disburse it to sellers later on like an ESCROW from a normal current account? If yes, then How do we show such transaction entries in our current accounts?
Advance thanks!!
Karan S. (Entrepreneur) (30 Points)
07 August 2019Hello members,
Can we accept payment from customers and disburse it to sellers later on like an ESCROW from a normal current account? If yes, then How do we show such transaction entries in our current accounts?
Advance thanks!!
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(184618 Points)
Replied 07 August 2019
Are you service provider (cash collecting agent)....... then how can the 'principal' be 'sellers'?
Karan S.
(Entrepreneur)
(30 Points)
Replied 08 August 2019
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(184618 Points)
Replied 08 August 2019
Correct. The amount collected on behalf of principal gets debited to his account in toto. So, only commission received over the service will be part of your income.
Karan S.
(Entrepreneur)
(30 Points)
Replied 08 August 2019
Sir, really thanks for the reply but I am unable to understand this term Toto and it is not showing up on google too. As a Taxpayer kindly respect my ignorance and reply to my confusion accordingly. Thanks!!
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(184618 Points)
Replied 09 August 2019
'IN TOTO' means entirely, or totally. (latin word for 'on the whole')
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