F form profitability & sales
R R Ambavat
(Querist) 13 May 2014
This query is : Resolved
Dear sir/madam,
I have 2 queries with regards to F form
1) if the goods are purchased in F form by us, in whose books is the profit registered.
Eg. X from Andhra Pradesh transfers goods to Y of Maharashra under F form @ 150/-. Y of Maharshtra sells the goods to Z of Rajasthan @ 155. Whose books register the profit of Rs.5/-.
2) In the above example, can Y, the commission agent, sell goods to Z who is the end consumer who is a manufacturer/processor or is it necessary to sell the goods to a trader only.
Sankaranarayanan
(Expert) 13 May 2014
The transaction by From F is purely the transfer form the stock ,For agent if you added some margin and send then that margin is your profit, where it is purely for branch transfer then the profit in the receiving breach head only because they only going to sell