Section 44ab
This query is : Resolved
08 September 2012
XYZ TRADING CO. IS AN TRADER IN MILK PRODUCTS. IF XYZ TRADING CO. IS CONSIGNEE OF ANOTHER FIRM AND IS SELLING THE GOODS ON THAT BEHALF THAN U/S 44AB WHETHER THE TURNOVER OF GOODS SELLED ON CONSIGNMENT SHALL BE INCLUDED FOR THE LIMIT OF 60LAKHS FOR A.Y 2012-13.
08 September 2012
In that case, the commission of the consignee will be the turnover, and not the selling price.
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08 September 2012
As per the ICAI guidelines to Tax audit for the purpose of Consignment turnover means.
A question may also arise as to whether the sales by a commission
agent or by a person on consignment basis forms part of the turnover of the
commission agent and/or consignee as the case may be. In such cases, it
will be necessary to find out, whether the property in the goods or all
significant risks, reward of ownership of goods belongs to the commission
agent or the consignee immediately before the transfer by him to third
person. If the property in the goods or all significant risks and rewards of
ownership of goods continue to belong to the principal, the relevant sale
price shall not form part of the sales/turnover of the commission agent
and/or the consignee as the case may be. If, however, the property in the
goods, significant risks and reward of ownership belongs to the commission
agent and/or the consignee, as the case may be, the sale price received/receivable by him shall form part of his sales/turnover.
In this context, it would be useful to refer to the CBDT Circular No.452
dated 17th March, 1986, where the Board has clarified the question of
applicability of section 44AB in the cases of Commission Agents, Arhatias,
etc.
So with this above explanation analise your case and decide.
OM SAI SRI SAI JAI JAI SAI
A question may also arise as to whether the sales by a commission
agent or by a person on consignment basis forms part of the turnover of the
commission agent and/or consignee as the case may be. In such cases, it
will be necessary to find out, whether the property in the goods or all
significant risks, reward of ownership of goods belongs to the commission
agent or the consignee immediately before the transfer by him to third
person. If the property in the goods or all significant risks and rewards of
ownership of goods continue to belong to the principal, the relevant sale
price shall not form part of the sales/turnover of the commission agent
and/or the consignee as the case may be. If, however, the property in the
goods, significant risks and reward of ownership belongs to the commission
agent and/or the consignee, as the case may be, the sale price received/receivable by him shall form part of his sales/turnover.
In this context, it would be useful to refer to the CBDT Circular No.452
dated 17th March, 1986, where the Board has clarified the question of
applicability of section 44AB in the cases of Commission Agents, Arhatias,
etc.
So with this above explanation analise your case and decide.
OM SAI SRI SAI JAI JAI SAI
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10 September 2012
for the purpose of 3CD for, column no 28(a) wether to show the stock inward & outward of sales on consignment......?????
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