Recharge cards sales turnover is rs 6575937 /- it is 44ab?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2011 sir
one client is taluk level sim cards delaer (tata teleservice ltd distribution).

his annual turnover rs 6575937/- in rc e loads, sim cards (this is our ttl statement )

his vat returns turnover is 63625/- only on sim cards sale.

he received tds amount 28731/- on commissions 287266/-.

he can audited his books of accounts or 4ad claim on 2 87 266/- @8% is correct?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 July 2011 "rc e loads" could not be understood by me.
I assume this to be total recharge made by
your client to the customers.

The Commission of 287266/- must have arisen on Rs 6575937/-.

In this case you can be treated as an agent for the TTL provided the agreement/contract entered into with TTL describes this fact.

If the situation is so, Audit is not required.

If turnover of 65.75 lacs and Commission of Rs. 2.87 lac does not have such relationship, tax audit will be necessary.

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CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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25 July 2011 i agree with the expert

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Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2011 sir
e load means
direct cell to cell balance transfer recharge system.
i am sold to our local distributors through cell to cell balance transfer.

tata tele service was given to me the distributor system to sold the recharge and sim cards.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 July 2011 Please show the agreement to a CA. He will definitely decide whether your services are as an agent or as a dealer. Show him the copy of the agreement.

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Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2011 yes

client and ttl co between a agreement for 3 years.
the agreement for taluk level distributor to sold the sim cards and rc cards.

CA Sachin D Jain

CA Sachin D Jain (Expert)
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25 July 2011 Dear Author,

In your case, the client is getting commission on recharge done. So, it is only the commission income which will treated as income of your client. Hence, tax audit will not be applicable in your case.

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Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2011 thank you dear member
good explanation.

once angina thank you sirs/ medam

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