Yogesh (Executive) (105 Points)
06 June 2015Mr. A purchased merchandise from xyz e-commerce website. He paid the value of goods on the basis of cash on delivery. Mr. A later found that goods are not as per specfication so he returned the goods to xyz e-commerce website. Mr. A received the value of goods directly to his bank account.
Mr. A now needs to file his retuen of income. So, he needs your advice on treatement of such receipt in his financial statement as well as for the purpose of tax computation.
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 06 June 2015
Such receipts are not to be taxed again as such income when received originally, would have already suffered tax. For eg, in this, if such item was purchased online using the savings from salary, then in that case, when the salary was received, it would have suffered tax at that time itself. So such receipts (ecommerce) are not required to be shown as income again.
CA Bhargav Nathwani
(CA in Practice)
(8307 Points)
Replied 06 June 2015
Agree with above answer...there will not be any effect in financial statement as cash paid i.e. cash cr. and same amount or less amount is refunded i.e bank account dr.
Yogesh
(Executive)
(105 Points)
Replied 09 June 2015
Thank you so much. It was very convincing answer.
CAclubindia
