BALANCE SHEET

[SUBRAMANIAM MEENAKSHI SUNDARAM]

I AM A CONSIGNMENT AGENT FOR A COMPANY, IN WHICH I AM GETTING ONLY THE COMMISSION

FROM MY BRANCHES SALES, (NOT A HUGE AMOUNT) , PLEASE ADVISE I HAVE TO SUBMITT MY

BALANCE SHEET TO SALES TAX DEPARTMENT OR ONLY TO INCOME TAX DEPARTMENT,

IF THE ANSWER IS YES, IN THAT BALANCE SHEET I HAVE TO SHOW ONLY MY INCOME OR INCOME AND MY SALES TURNOVER ( AS THE TURN OVER WILL BE IN CRORES BUT THE COMMISSION WILL BE IN THOUSANDS ONLY) PLEASE ADVISE, I AM REGULARLY FILLING MY VAT RETURNS AND PAYING ALL THE TAXES PROMPTLY, AND FOR THE PAST TWO YEARS I AM SUBMITTING TAX AUDIT REPORT ALSO, BUT I HAVE NOT SUBMITTED MY BALANCE SHEET, PLEASE ADVISE WHAT CAN BE DONE, IN RECENT DAYS DUE TO DRAUGHT THE SALES IS COMING DOWN AND THE SALES TAX DEPT IS ASKING FOR ADV TAX

AI Summary

Consignment agents must submit balance sheets to income tax; sales tax requires a trial balance for audits. A consignment agent inquires about the necessity of submitting a balance sheet to the sales tax department or only to the income tax department, given that their income is primarily commission-based. A respondent advises that the balance sheet, showing only commission income, should be submitted to the income tax department. The sales tax department requires a trail balance for auditing sales transactions at the business location. If the principal company includes the agent's sales in its VAT returns, the agent need not file separately. Other forum participants commend the detailed response.