Expenses for 194 h commision
This query is : Open
13 May 2012
MY MANY CLIENTS GETS COMMISION UNDER SECTION 194 H...HOW MUCH EXPENSES I CAN CLAIM AGAINST SUCH EARNINGS...?
WHTS D AUDIT LIMIT FOR SUCH COMMISION UNDER 194 H
WHTS D AUDIT LIMIT FOR SUCH COMMISION UNDER 194 H
13 May 2012
Commission Income is assessed under the head Business Income. It's not defined as profession under Section 44AA or U/s 194J.
Limit of 60.00 lac will apply.
.
You may claim genuine expenses incurred and recorded by the assessee and according to the facts of the indivdual commission agent. A common rule can not be framed by us as the circumstances and facts of each such assessee differ substantially.
.
While debiting any expense-
Always keep image of an interrogating assessing officer in your mind. Like a good student, you must remain in a position to secure at least 70% marks, had the AO been the examiner.
.
.
Limit of 60.00 lac will apply.
.
You may claim genuine expenses incurred and recorded by the assessee and according to the facts of the indivdual commission agent. A common rule can not be framed by us as the circumstances and facts of each such assessee differ substantially.
.
While debiting any expense-
Always keep image of an interrogating assessing officer in your mind. Like a good student, you must remain in a position to secure at least 70% marks, had the AO been the examiner.
.
.
Message likes :
2 times
13 May 2012
BUT MY CLIENTS DONT HAVE ANY EXPENSES RECORD...HOW MUCH % OF COMMSION HE CAN CLAIM EXP..AS PER UR EXPERIENCE
13 May 2012
you can opt for sec 44ad
13 May 2012
1. Whether your client has regularly received cheques towards commission throughout the year ?
.
First Possible Reply - Yes.
.
The manner in which he has made withdrawals from his Bank A/c has to be observed. He might have not withdrawn sufficient amount for incurring expenditure. Sometimes Brokers keep on spending with their unaccounted cash receipts and keep intact the bank balances For debiting expenditure you must have supporting withdrawals from his bank a/c and enough cash in hand.
.
Second Possible Reply - No. He is getting commission only when his account is finalised by the payer or otherwise??
.
Such a situation may arise when the deductor credits his bill on 31.03.2012 or makes provision for commission payable.
.
In such a situation, expenditure should not be debited by taking cash loans or likewise if the assessee is not having sufficient cash in hand.
.
To my view, in such kind of unorganised situations, not more than 30% of
Income should be shown towards incidental business expenditure to purchase piece of mind (by leaving a bigger share of the TDS to the Govt). 70% of Income Satisfies the AO, generally.
.
All such percentage are further to be- clientwise -reviewed by you .
.
.
First Possible Reply - Yes.
.
The manner in which he has made withdrawals from his Bank A/c has to be observed. He might have not withdrawn sufficient amount for incurring expenditure. Sometimes Brokers keep on spending with their unaccounted cash receipts and keep intact the bank balances For debiting expenditure you must have supporting withdrawals from his bank a/c and enough cash in hand.
.
Second Possible Reply - No. He is getting commission only when his account is finalised by the payer or otherwise??
.
Such a situation may arise when the deductor credits his bill on 31.03.2012 or makes provision for commission payable.
.
In such a situation, expenditure should not be debited by taking cash loans or likewise if the assessee is not having sufficient cash in hand.
.
To my view, in such kind of unorganised situations, not more than 30% of
Income should be shown towards incidental business expenditure to purchase piece of mind (by leaving a bigger share of the TDS to the Govt). 70% of Income Satisfies the AO, generally.
.
All such percentage are further to be- clientwise -reviewed by you .
.
13 May 2012
@ Piyush Goplani...
Commission Income is not covered U/s 44AD.
Please refer recent retrospective amendment in Section 44AD.
.
Commission Income is not covered U/s 44AD.
Please refer recent retrospective amendment in Section 44AD.
.
Message likes :
5 times
13 May 2012
IF WE DONE AUDIT FOR SUCH ASSESEE THEN CAN WE CLAIM EXPENSES AS SHOWN IN AUDIT REPORT...THEN WHETHER A.O. WILL OBJECT OR NOT?
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
- Inventory of finished goods
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Sale of property furniture sale
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Confusion around Form 26QB fields
- Tds on building rent monthly
- RCM INVOICING FROM NOV-2024
- GST Regis.
- Disallowance of Section 43B(h) to sez units
- As per schedule III of balance sheet how to pass journal entry
- Is correct way to find out capital of individual on 31st March
- Individual capital equal to which assets of balance sheet
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
