branches of consignment agents, Banking - Finance

[SUBRAMANIAM MEENAKSHI SUNDARAM]

Dear Sirs,

I am a consignment agent for a company and I am having branches in my state(under my TIN)

they are all depositing amount directly to my company (consignor) whether it is allowed

as I am receiving stock on the basis of Stock transfer only not on sale basis.

please guide me (pls send the reply to my mail id)

thanks

Posts / Replies

[MANDAVILLI RAMAKRISHNA]

y the selling co. deposit money in your account. if money sent for meeting godown rent etc., no problem. 

consignment agent means a dealer agrees to take stocks without making payment from the seller and stores and sells and send the balance to the seller after deducting his commission, rent etc.,

 

[MANDAVILLI RAMAKRISHNA]

understand. if the purchasers are depositing money in the consignor account directly, there will be a technical problem. once or twice no problem, if they are not giving money to you, how you can be consignment agent? The consignor is getting money directly it means he will be the seller.

but if you are showing the sales amounts in your vat returns and making payment of taxes and receiving stocks thru your way bills and storing and despatching to the buyers, then deposit of money is not a big problem. 

The technical issue is: who is transferring the goods to the buyer is important.