Payment in lieu of products

Supplier charge certain % of commission on our sales being agency comm fees which settled through normal payment.  However supplier now want their fees to be paid by our products without issuing any tax invoice to us on the comm fees.  Is this permissable and legimate?  If not, what document require in this transaction of the payment mode (products instead of monetary payment) and tax code to use?

Asked on January 11, 2017 2017-01-11 01:53:35 Business (商家)
Add Comment
3 Answer(s)

You cannot contra account for commission received against your products supply.  Issue separate document.  You can contra account when payment is made depending on your accounting policy.

Answered on January 11, 2017. 2017-01-11 03:17:03
Add Comment

This mean supplier must issue us a tax invoice for the commission charged to us and we can pay in lieu of products instead of cash payment?

When we pay by products, we normally generate SO, DO and Invoice however since this is a settlement to the invoice from supplier, what document to issue and what related tax code should we be using to recognize the products sent?

Answered on January 18, 2017. 2017-01-18 03:12:06
Add Comment

Sorry to say under GST Act 2014 there is no other way.

Answered on January 18, 2017. 2017-01-18 04:57:18
Add Comment

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.