Aduit us 44ab

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2011 my client has a stamp vendor he sale a stamp of rs 14200000 and recived commission of rs 213000 @ 1.5% can i liable to audit u/s 44ab or not

CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)
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27 September 2011 If he is selling the stamp paper on behalf of Govt as an agent, in that case only the commission amount will be consider as turnover for 44AB purpose, otherwise full sale receipts value will be considered.

So better ask the assessee about the status, whether acting as an agent or on principal basis.

Hope it helps in solving your query.
Further comments welcome from senior experts.