12 August 2012
There is a client being commission agent dealing in agricultural commodities he is receiving income from adat (commission) as well as from wholesale trading activities, both are inter-related business. He is havinng net income as per p&l account which includes adat as well as wholesale trade Rs. 250000/- whereas the turnover for wholesale business comes to Rs. 3000000/- and adat amount sto Rs. 450000/-. How to compute the income for tax purpose, whether he comes under the perview of section 44AD, or he is required to audit his accounts.
As per the recent amendment in the Income Tax Law..Commission Agents are not covered under section 44 AD... Hence, u have to prepare the Profit & Loss Account and accordingly determine the profit or loss...
CAclubindia
