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 .
8 Replies
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 06 July 2011
in P/L account, indirect income, commission received, ( IOS)
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
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
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.
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