can i use credit note as a sub brokerage

honourable sir,

i have one query about incometax. during the audit i have found that a company which main business is real estate consultant which is authorised dealer  for many builders for booking the flats . the coustmer is generally book the flats throught this company and company earns commission from builders for booking of flats by customer. the company also give certain percentage of discount to customer which book flats through this company subject to realisation of commission from builders.

the company is showing the entries in profit and loss which discount it's offering to customers as a sub brokergae and deduct the tds @ 10%. my question is can company use it's discount as a subbrokerage or should it  use a credit note. how can company claim the aforesaid amount paid by tt's customer.

FOR example

X books a flats throught company from DLF and company earns 5% commission and company give 2% discount to X . then how can company claim the discount given to X . Is it use as a subbrokergae or we should only recognise revenue 3%. please help

Thanking you.

Replies (2)

 

Well credit not means sales return so in your business sale return is not possible that’s why discount charged….

Hence TDS deduct only on commission amount paid to sub broker or broker.

but sir i can claim as a expenses as discount or subbrokerage, because company is paying the discount  amount by cheque and use as a subbrokerage and deduct 10 % TDS on subbrokerage.

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