Abdul Rauf (Accounts Practicener) (76 Points)
28 December 2016Hi,
we are a consultant we provide services to customer on behlaf of ABC Co. the customer pay ABC Co. fees but he not pay directly to ABC Co. He paid to us and then we transfer the fees to ABC Co. the entry will be
ABC Co. A/c Dr
To Bank Account
but what would be the ABC Co for me. Creditor or i can show as a indirect expense.
what is the mode or nature of transaction.
CA Tanvi Sheth
(Consultant)
(232 Points)
Replied 28 December 2016
Hello,
Nature of transaction depends on the activity carried out by your org. Here it seems that you are just acting as an intermediary and might be charging professional fees or commission as per the agreed terms.
If the nature is as mentioned in the above para, then just show the company(ABC co) as payable, they are not your creditors as you have not entered into any transaction of purchase or expense with them.
And if consultants are to be charged on accrual basis, you can show them as receivables.
Regards,
Tanvi
Abdul Rauf
(Accounts Practicener)
(76 Points)
Replied 29 December 2016
Dear Tanvi,
Thanks for your reply.
Actully Customer paying ABC Co. fees. but he paid to us and we paid to ABC. there is no other intention in this activity. we sepratly chrged our counsultancy fees. so how can i show in payment mode? (in tally). If ABC Co. ledger will created then what will be sub lager group. (under which group of ledger come.)
Second question is if we charged our counsultant fees together then we deduct our fees from such amount then paid to ABC Co. in this case how can i pass entry in tally. how show the payment? as indirect exp or what else?
Abdul Rauf
(Accounts Practicener)
(76 Points)
Replied 30 December 2016
Hi Dear,
received invoice for office rent with service tax charges.
How can i pass this entry in tally.
Can i pass in purchase voucher as bills payable? under which categories serivce tax come for rent? ( under rent of immovable property is right?
Plz reply ASAP.
CAclubindia
