Tax audit of recharge distributor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2019 One of our clients is a recharge distributor having total turnover of RS 1.4 cr . In 26 AS his account is credited by RS 24.44 lakhs of commission, majority of his commission arrives from sale of currency and majority portion of his commission will b transferred to retailers .he has issued invoice to the company to the extent of RS 7 lakhs towards his commission portion. Now my query is what amount will be his incy

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 January 2019 His turnover will be 24.44 lacs so tax audit not applicable. 7 lacs will be his income less expenses.

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2019 Thank u sir . Your words are of great help for me

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Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2019 Our client, a recharge distributor has considered his currency sales as turnover in GST and paid applicable GSt and he has also claimed input form the purchase same. My question is whether he can declare his commission (as per 26AS) as his turnover and declare his net income to the extent of invoice issued to the company.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 January 2019 No problem go as per 26AS. Turnover as per GST provisions is different.