As the seller is illtrate he used to take only cash.But the purcahser sent the amount(includes broker commission) into bank account of agent for paying in cash to seller.there are huge number of transactions like this in a bank statement of agent.these transactions are 3rd party transactions which are not taxable in his hands and he has to pay tax for commission receipts.am i correct?
1 Replies
Monali Dua
(Manager)
(266 Points)
Replied 24 April 2019
Seems to be correct, but correlate invoices with the cash deposits, and purchase invoice of the sundry creditors with cheque payments.
Recent Topics
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
Related Threads
CAclubindia
