Dear sir/madam My client is a telecom distributor who has many sources of income like 1. Sale of e-recharge flexi or talk time. Under this he does a neft or rtgs of rs.100000 to the co. The co. Transfers 104500 into his account and then he passes on 103000 to the retailer keeping 1500 as his commission.
2. Sale of e-recharge coupons Under this he does a neft or rtgs of rs. 95500 to the company on whis the company issues to him coupons of rs. 100000 mrp. Which he sells to the retailer for rs.97000 keeping 1500 as commission.
3. Target based incentives Under this he gets targets from the company for achieving activations of new sim cards, which if achieved fetches him 30-40 rs. Per activation payment of which is made to him after deduction of tds.
4. Target based incentive of retailers Under this the retailers working under him get the targets on whose achievement they are paid money but the tds of the same are deducted in the distributors pan.
My queries
1. 100000 purchase and sale of flexi is to be treated as turnover or only 1500 (4500-3000) is to be shown.
2. Same is the question for coupons.
3. The amount recieved on targets is commission and 10% tds is deducted on it and the commission of retailers is to be charged as expense so is there a need of deducting
. If the above is considered as turnover then the sale purchase goes up to 2 crore but if only commission is treated then the total commission is 7 lakhs hence no need to get the books audited. So no liability to deduct tds on commission again as it is a proprietary concern.
Please help sir It is very urgent and highly imp.
CAclubindia
