Turnover in case of Commission Agent

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Abhi123 (Querist)
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23 August 2007 1. Turonver for the purpose of tax audit whether total sale and commission will be considered or only commission will be considered, if commission agent remit the sale amoount after deducting his commission.

2. What is the accouting treatment of purchase from prinicipal and sale effected on behalf of principal and stock held with him at the closing of F.Y. And Sales tax has been deposited by commission agent and then remitted by the principal on finalisation of account

Jitender

Jitender (Expert)
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24 August 2007 base of tax audit will be commisiion received by the agent. and agent should consider consignment accounting.

madhusudan

madhusudan (Expert)
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24 August 2007 Dear Friend,
You may go through Circular No. 452 dated 17th March, 1986 for a complete answer.
This circular deals with Kachha arahatia and Pacca arahatia. Alternaively u can see the Taxmanns direct taxes law & practice in the chapter PGBP u/s. 44B.

Hope it will clear ur query

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