12 November 2011
If I am a commission agent/broker. But the whole monetary transaction is Going through my bank account, then it will be Considered as trading business or there is no problem in making transactions through my account??? For eg: I sell fruits on behalf of a Farmer and the customer pays full amount to me then i deduct my commission from it and pay the balance amt to the farmer... Is there any problem in doing transactions like this or i have to show this as a trading business and go for Audit if transaction crossess 60 lakhs??
13 November 2011
Once you get money, you become buyer as risk of seller vanishes and a contract gets concluded. This shall be regarded as trading purchase and sell. Solution is you get out of money flow and take only commission.
CAclubindia
