RAJ KUMAR (FINANCE MANAGER) (1393 Points)
18 April 2012HELLO FRIENDS, CAN ANYBODY TELL ME THE ACCOUNTING OF MOBILE RECHARGE DEALERS.
BASICALLY THEY EARNS THE COMMISSION INCOME.WHEN THE DEALER RECHARGES THEIR MOBILE WHETHER IT IS THEIR PURCHASE AND WHEN THEY MAKE FLEXI RECHARGE TO CUSTOMERS WHETHER IT IS THEIR SALE.
OR CAN I TAKE SIMPLY DIFFERNCE THEIR COMMISSION INCOME.
PLS. HELP ME.
I SHAAL BE VERY THANKFYL TO YOU.
PLS. EXPLAIN CLEAR.
sunil jain
(student)
(37 Points)
Replied 16 May 2012
Please can you share the natuer of Agremment between you and Operators . Pricipal to Pricipal or principal to Agent relationship . based the relationship you can evalaute wether we need to should book commission or sell proceed as revenue. Thanks
pulkit gupta
(CA final student)
(160 Points)
Replied 16 May 2012
it should be considered as commission income, as the recharge dealer merely act as an intermediary. Morever sale/purchase exists in the case of goods, in recharge only money is involved. you can consider the example of a bank.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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