Commision in kinds .treatment ,will it be allowable expense
This query is : Resolved
15 May 2017
if we paid the payment of a booking agent in kind of vehicles(and its our business to sell those vehicles)where sales tax invoices are issued in different names according to the written instruction from booking agents and income tax withheld and deposited as per provisions of tax law....
so the question is the commision we have paid in for of vehicles is a admissible expense or not.what is the tax treatment...can we pay commissions in kind...will it be considered our sale or commssion expense...and can we deduct that expense while compution taxable income
so the question is the commision we have paid in for of vehicles is a admissible expense or not.what is the tax treatment...can we pay commissions in kind...will it be considered our sale or commssion expense...and can we deduct that expense while compution taxable income
16 May 2017
you can pay commission in kind,
and since you are billing the vehicle also through which the commission amount is being adjusted it will be treated as sale also
Tds is applicable on the commission amount which needs to be adjusted first and then adjusting the amount from sale
or to be paid and to be recovered from the agent if vehicle is sold without tds adjustment
also commission is an allowable expense
suggestion: for better accounting
pay the commission amount after deducting TDS and then take a cheque from him against the sale
and since you are billing the vehicle also through which the commission amount is being adjusted it will be treated as sale also
Tds is applicable on the commission amount which needs to be adjusted first and then adjusting the amount from sale
or to be paid and to be recovered from the agent if vehicle is sold without tds adjustment
also commission is an allowable expense
suggestion: for better accounting
pay the commission amount after deducting TDS and then take a cheque from him against the sale
16 May 2017
tds has been deducted and been desposited as per the provisions of law..but as we have paid the commission in kind .so would our tax liability be discharged ...can we claim the commssion in kind as a allowable deduction while computing taxable income
16 May 2017
Yes, It is an allowable expense
provided TDS has been properly considered for
provided TDS has been properly considered for
17 May 2017
is there any specific section which allows us to pay commission in kind..can you refer any case.plzzzzzz
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Event company query
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
Trending Online Classes
CAclubindia
