12 December 2009
Dear Experts, I would like to Know If my T.O of Cattle Business Goes over 1 Crore...than in which Section My books of Account to be Audited.. or no need to do
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..
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..
13 December 2009
Hi Murtaza, Pass the accounting entries as follows if u want to avoid tax audit: At the time of deposit by purchasers : Cash / Bank A/c Dr. To Deposits from purchasers A/c
At the time of purchase : Deposits from purchasers A/c Dr. To commission A/c To Payable to cattle owners A/c So your income statement will show only commission as your income in which case if your commission income exceeds Rs. 40 lakhs then only you will be caught in sec 44AB Regards, CA Shakuntala Chhangani
CAclubindia
