Cattle Business or Profession

This query is : Resolved

Murtaza I Bhagat (Querist)
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12 December 2009 Thanks for your special Reply,

But if Above Details are oposite to this matter like this...
I am Dealing Cattle Camps ok but Not just like business but like Commisssion. I am just a Bridge of Cattle Owner and Cattle needer but Transation can not done with each them without me. Purchaser/needer suppose to be deposited the Cattle Amount in my bank a/c & then I usually Pay the Payment to cattle owner after Deducting Commission of mine.
Imp :- I am doing this bcs if one person has to sale their 2 or 3 cattles in cattle Camps they must have to spend more time. at that time I take Authority of all Cattle owners for their cattle sale....i.e 25 person whom I consulting,total cattle for example.82 No. I registered in camps on my own name as owner & Sales the cattle to the fixed Purchaser that I also known but all the Transation are done by cattle Camps Org. thats why all the money of 82 Cattle first deposited in my A/c & then I Pay to the Owner...
I really want to know,after counting all the transation for the Year....my a/c t.o goes to over 1.5 crores...
do i need to change the System or its not track any difficulties in my profession..

Pls explian i really want to know

Thanks in advance

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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12 December 2009 I understood the query. Even if you are dealing in cattle on commission basis, it wont amount to profession. Its still business only. Only the fact that the turnover is not in your name and you are entitled only for commission will not render your activity as a profession. Further, for accounting purposes what you maintain is ok, but take care that while finalizing the accounts you dont carry the purchase and sales accounts to profit and loss account. Adjust the purchases and sales against each other and then transfer the commission to the credit of profit and loss account.
The applicability of Sec.44AB shall not be on the basis of the turnover. But audit u/s 44AB shall be applicable only when your commission exceeds Rs. 40 lakhs.