Urmila Mahalwal (CA ) (120 Points)
02 January 2012A goods transport operator (Goods transport through Air) get a franchiee of a courier company. whenever he got any order, he booked order in the name of courier company and courier company pay coomission (directly credited in bank account) to him for order booked by goods transport operator. i wanted to know what the treatment of commision received, whether any abatement available and how we present in books??
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 04 January 2012
Transport of Goods by Air Service & Franchise Service are two different services. Where you are in receipt of commission for franchise service provided by you, provisions applicable to this class of service only will apply on commission so received. As per my knowledge, no abatement has been specified in case of Franchise Services, so far.
Moreover, no abatement seems to be available in case of Transport of Goods by Air Service also.
As far as presenting the same in books is concerned, Commission on Franchise Service will be presented as an additional source of income on the same line as in case of air fare charged for Transport of Goods by Air Service.
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