Tax Audit
This query is : Resolved
03 September 2010
if a person (Say X) is running a branch of a company (Say Levis)
1. as per Agreement Company will provide stock, and billing is done on Online basis.
2. as per agreement its Consignment Sale
3. Mr.X is registed in Sale Tax Dept.
4. Mr.X only receive Commission on sale and interest on deposit.
5. Now if sale Exceed 40 (or 60)Lakh..
is Mr.X is liable to Tax Audit.
it may be noted that.
1.It is consignment Sale as per Agreement and Mr.X is Selling as per Sale Tax
2. But There in no Purchase as such. nor even Closing Stock
Do Reply with provisions
1. as per Agreement Company will provide stock, and billing is done on Online basis.
2. as per agreement its Consignment Sale
3. Mr.X is registed in Sale Tax Dept.
4. Mr.X only receive Commission on sale and interest on deposit.
5. Now if sale Exceed 40 (or 60)Lakh..
is Mr.X is liable to Tax Audit.
it may be noted that.
1.It is consignment Sale as per Agreement and Mr.X is Selling as per Sale Tax
2. But There in no Purchase as such. nor even Closing Stock
Do Reply with provisions
04 September 2010
In my opinion, Mr X is not required to get his books of account audited u/s 44-AB as the sales are actually captured in the books of the Principal.
Mr. X is registered with the Sales Tax Department since that Act includes an agent also in the definition of a 'dealer'. i.e., the agent here complies with the sales tax law as an agent of his principal.
Further, as the invoices are raised online (I presume that the portal where the agent registers the sales belongs to the principal, as you query is silent in that regard), you have a strong case in your favour!
The agent can merely show his commission based on the TDS certificate from the principal and file his IT return.
Mr. X is registered with the Sales Tax Department since that Act includes an agent also in the definition of a 'dealer'. i.e., the agent here complies with the sales tax law as an agent of his principal.
Further, as the invoices are raised online (I presume that the portal where the agent registers the sales belongs to the principal, as you query is silent in that regard), you have a strong case in your favour!
The agent can merely show his commission based on the TDS certificate from the principal and file his IT return.
11 September 2010
Under the sales of goods Act, the sales done by consignee on behalf of consigner is considered as sales of Consigned.
So the Tax audit on consignee is not applicable UNLESS his commision income exceeds 40(or 60) lacs
So the Tax audit on consignee is not applicable UNLESS his commision income exceeds 40(or 60) lacs
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
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
