Turnover !!!

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 October 2010 What is the meaning of turnover as per Income Tax act. for Tour Operators/Travel Agent????

What will be recognised as sales whether Net Reciepts or Gross for Example
Tour Receipt Rs 1,20,000/
Hotel booking ,car fare Rs 80,0000/-

What will be Turnover Rs 1,20,000 or Rs 40,000??

Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 October 2010 Applicability to commission agents - If the commission agent does not sell the goods of his principal as his own and only charges commission for bringing two persons to holy marriage of sale and purchase, then he will not come within the ambit of section 44AB, except when his professional receipts exceed Rs. 10 lakhs - Abhay Kumar & Co. v. Union of India [1987] 164 ITR 148 (Raj.).

Querist : Anonymous

Querist : Anonymous (Querist)

22 October 2010 Tour Operator earns both commission as well as profit by selling package at higher rate than cost?????

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 October 2010 Then it is contract on principal to principal basis and hence whole receipt of Rs. 120000/- will be turnover.