09 February 2012
i am a dealer in ydes and chemicals
I have sold goods worth Rs. 3,80,290/- and received commission from same business of Rs. 2,98,307/-
now my net profit including commission is Rs. 2,74,990/- & excluding commission is a loss of Rs. (23,317/-)
As per section 44AD 8% income of Total Turnover or Gross Receipts is to be booked.
My query is that whether above said commission can be included in "GROSS RECEIPTS" as per the section or will i have to show a profit of 8% on the figure of Sales?????
If commission is also earned in the ordinary course of your business.. then it shall be treated as profits of the business and hence you are not required to separately compute 8% on your sales..
CAclubindia
