BALANCE SHEET

[Asked by Guest]

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

[Ganeshan Kalyani]

Sir, Income tax department would ask for your personal income details for which they would ask your Balance Sheet, in which you would have disclosed only the commission income earned by you from the sales done as a consignment agent. This will have to be submitted to Income tax department.

Secondly, the sales tax department who is having jurisdiction to your business location would ask for trail balance of your business location. This is because they have to audit the location sales transaction only. In fact the company to which you are associated to as a consignment agent would have added your location as additional place of business and would also be filing VAT return and Vat Audit Report. Please check this at your end, because you have mentioned in your query that you are filing VAT return and Vat Audit report. If your principal dealer is filing return by including the sales of your location then you separately should not file VAT return.

Thanks.

[MUKUND THAKKAR]

Nicely explain by Ganeshan Kalyani sir,,,

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

Topmost reply indeed. Enriched my knowledge also, having no commerce background.

Thanks Sir.

AI Summary

Tax reporting obligations for consignment agents: disclose commission income to income tax; VAT filing depends on principal's returns.
For income tax the agent must disclose personal income and submit a balance sheet showing only commission income. For VAT the tax office may seek the business location's trial balance to audit sales, but if the principal includes the location in its VAT returns and audit report, the agent should not separately file VAT returns.