HELLO FRIENDS, CAN ANYBODY TELL ME SUPPLY OF FRUITS AND VEGETABLES BY THE FARMERS TO THE COISSION AGENTS IS TREATED AS THE AGRICULTURAL INCOME OF THE FARMER.
PLS. HELP ME.
IT IS VERY NEEDY.
RAJ KUMAR (FINANCE MANAGER) (1393 Points)
16 September 2010HELLO FRIENDS, CAN ANYBODY TELL ME SUPPLY OF FRUITS AND VEGETABLES BY THE FARMERS TO THE COISSION AGENTS IS TREATED AS THE AGRICULTURAL INCOME OF THE FARMER.
PLS. HELP ME.
IT IS VERY NEEDY.
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 16 September 2010
Dear Raj Kumar,
Income derived from cultivation is agricultural income. THE SC in the cae of Raja Benoy Kumar Sahas Roy,ITR466, has held that income derived from basic and subsequent agri operations bear the character of agri income. Hence, the farmer should cultivate vegetables and sell the same to agents. if he buys the same from other farmers and sells to agents, it does not amount to agri incomme
vkbothra
(Learning )
(690 Points)
Replied 16 September 2010
Yap it is.
nice clearification dear CA G.muguntha.
thanks
;)
SIVARAM CHOUDHURY
(OWNER)
(182 Points)
Replied 16 September 2010
Hi Raj kumar, The answer is farmers' agricultural income is not taxable
Going by what the SC has said is ok but as an company you may have a problem practically. Though full details are not given i assume you are asking this question on behalf of a company either the company is in agricultural operation itself or buying from some middleman.
So as said above it will be difficult to monitor whether the farmer is 1. buying from some other and selling or 2. cultivating and selling. Since in practice it will be difficult to monitor the farmer and bring him under our internal controls. Only a declaration withregard the fact that this is produced by him and there is some land or right to land in his name should suffice . Since you cannot monitor whether he has produced the whole quantity or part quantity or procurred from outside
Further if you are a agriculture company then the story is different since you have to account the purchases.
In short you can use or mis-use the law as per your need. It is a benefit for poor agriculturists like me
CA. BIJENDER KR. BANSAL
(ACA, B.COM)
(8148 Points)
Replied 16 September 2010
| Originally posted by : CA.G.Muguntha Narayanan | ||
 |
Dear Raj Kumar, Income derived from cultivation is agricultural income. THE SC in the cae of Raja Benoy Kumar Sahas Roy,ITR466, has held that income derived from basic and subsequent agri operations bear the character of agri income. Hence, the farmer should cultivate vegetables and sell the same to agents. if he buys the same from other farmers and sells to agents, it does not amount to agri incomme |
 |
AGREED WITH CA. NARAYANAN , WELL EXPLAINED.
Saurabh Toshniwal
(ca final)
(2363 Points)
Replied 16 September 2010
| Originally posted by : CA.G.Muguntha Narayanan | ||
|
|
Dear Raj Kumar, Income derived from cultivation is agricultural income. THE SC in the cae of Raja Benoy Kumar Sahas Roy,ITR466, has held that income derived from basic and subsequent agri operations bear the character of agri income. Hence, the farmer should cultivate vegetables and sell the same to agents. if he buys the same from other farmers and sells to agents, it does not amount to agri incomme |
|
agree with him.........very nicely & clearly explained
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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