EASYOFFICE

commission paid

This query is : Resolved 

16 August 2010 My client is a post office agent. He had paid commission to his customers out of commission earned from post office. Whether such commission is an allowable expenses. The ITO want to disallowa by saying that as per agency rules an agent can not pay commission back to his customers

Ca Sachin jain

16 August 2010 Then check ur agency rules. If it permits then ok otherwise show you should have shown it as some professional fees paid or show it now if possible.

16 August 2010 As per rule Agent Can not pay commission back to his customer. but it will treated in other/misc. exps Head.


16 August 2010 TREAT THE COMMISSION AS PROFESSIONAL INCOME AND SHOW IT UNDER OTHER HEADS BUT THAT SHOULD HAVE NEXUS WITH YOUR PROFESSION.

16 August 2010 Nice suggestion sanatji but i think the return of income has already been filed and the case is under scrutiny as per details of the query. So now i dont think this can be done.

16 August 2010 YES I KNOW THAT THE FILE IS UNDER SCRUITNEE NOW. YES IT CAN BE DONE IF HE HAS ALREADY SHOWN AS COMMISSION THEN IT CAN BE POSSIBLE . JUST WRITE A LETTER TO THE A.O THAT COMMSSSION HAS BEEN PAID TO THE PERSON WHO DOES NOT HAVE THE LICENSE BUT HE INTRODUCES THE CUSTOMER WITH THE AGENT.FOR THAT HE HAS PAID THE COMMISSION . ONE THING HE HAS TO DO THAT HE SHOULD MAKE A WRITTEN CONTRACT WITH BACK DATE. AS THE FILE IS UNDER SCRUITNEE THEN YOUR SUGGESTION IN THIS CASE IS TOTALLY MEANINGLESS.



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