Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Changeability of Commission Income

CA Anil Sah (DGM(F), PSU) (139 Points)

06 July 2011

Commission Recd. during the course of business from supplier, they aslo dedect TDS on t same under 194 H. Under which Head tha said comm. is charge IOS or PGBP ? the said comm. have direct nexus with Business .

Reply
Follow
Share

8 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 06 July 2011

in P/L account, indirect income, commission received, ( IOS)

Upgrade to CAclubindia Pro. Subscribe Now!

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 06 July 2011

yes credit the commission to p and l ac. it is taxable under pgbp

valji (Accounts manager-MBA) (2150 Points)
Replied 06 July 2011

AGREE WITH ABOVE

CA Dipak (achiever) (238 Points)
Replied 06 July 2011

credit in p/l. chargeble under PGBP.

RONAK DARJI (CA FINAL) (382 Points)
Replied 06 July 2011

Dear Member,

As per my opinion follwing entry should be passed for proper books keeping..

1.Commission A/c Dr xxx

To P&L A/c xxx

If your main business is to take commission and do business with supplier then Income will be treated as PGBP.In any other case It will be IFOS.

Regards,

Ronak Darji

Upgrade to CAclubindia Pro. Subscribe Now!

JINESH SHAH (PRACTICING CA) (151 Points)
Replied 06 July 2011

taxable in PGBP

CA Anil Sah (DGM(F), PSU) (139 Points)
Replied 06 July 2011

Dear CCI Members , Thanks for replies. Mr. Ronak , i am agree with you but do you have any case law etc in supporting the same, because in my case the main business is trading and assessee incurred Expenditure against said commission, which is included in indirect epxenses and it is impossible to segregate the same . And furthure i am not concern with accounting entries please explain the taxation implication only..................................

Thank in Advance .................................

Pulkesh Mehta (Chartered Accountant) (243 Points)
Replied 06 July 2011

As u are saying that expenses against commission are included in Indirect expenses,than it has to be surely included in income of business i.e.P/L A/c of Business.