Income Report

[Maf. King]

On Wed 23 July 14 18:26:09 Wm wrote:

> 
> If so surely you create an invoice for the amount received + tax when
> you receive it.  The amount received goes to bank/cash and the
> calculated tax amount goes to the same place as your purchase tax
> offsets.  Some time later you work out the in and out difference and
> declare that.
> 
> Am I misunderstanding how things work in India, Narendra?

Hi Wm,

If (and that is a big if) I understood the OP correctly, I _think_ that the 
tax is paid directly to the Indian government by the client, and this what 
needs to be tracked....

1.  Do work
2.  Write invoice + add tax
3.  Client pays invoice (cash basis, so transfer then (and only then) from 
Income to Bank in GC.  no A/R involved)
4.  Client pays tax portion to consultant's tax account at government.

I think that there could be significant time between 3 & 4, and that is the 
cause of the confusion.  I think the OP is trying to tie together invoices 
written, money paid and tax paid by individual customers.

But I'm not sure.  Narendra has said that transaction reports on "Bank or Tax" 
and also "Bank and Tax" don't show what is required, so I'm at a loss at the 
moment....

0.02
Maf.