hi all,
today's my question is
whether security deposit is a sales?
bcs our company is basically a railway Infrastructure company where we undertake railway contracts. at the beginning of participation of tender we have to pay some money as a deposit which is 10%of the contract value, but in that we pay only 2% as a deposit once we get the contract balance 8% will be deducted by the railway as balance deposit along with its tds, gst of 2% and all.
Now that 8% will be treated as sales or it is deposit only?
Security Deposit
Replies (2)
As such it remains as security deposit till the final settlement of accounts.
AS per AS 9, Revenue recognition all conditions are fulfilled at the time you complete your service, hence the sale of 8% should be treated at the end of provision of service and raising of Invoice.
Recent Topics :
- Pan surrender via online
- EPFO Portal Issue – Unable to Save Employee
- Plant & Machinary
- ITC reversal after supplier amended the recipient
- GIFTS TO USEFUL CONTACTS ON FESTIVALS INCOME TAX
- INTEREST ON REFUND OF TDS
- Input tax claim related
- User not found in MCA portal
- GST RATE ON FILM PRODUCTION
- Section 54
Related Topics :
CAclubindia
