Mr. 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.
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.
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.
Thank you so much. It was very convincing answer.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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