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Direct & Indirect Income

inderjit (article) (145 Points)

12 February 2009

What is the different between Direct & Indirect Income please give example

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10 Replies

omprakash kumawat (STUDENT ) (32 Points)
Replied 23 February 2009

direct income means which is related direct to business for example if a trader get target discount on certain amount of purchase from his suppliers then it will credited to trading account as direct income and other incomes that does not closely related to business treated as indirect income for example if interest received on fixed deposit that is not closely related to routine business

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CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9060 Points)
Replied 28 March 2009

DIRECT INCOME IS THE INCOME WHICH IS DIRECTLY RELATED TO YOUR TYPE OF BUSINESS EG... SALE OF GOODS

INDIRECT INCOME IS INCOME WHICH IS NOT REGULAR TYPE OF INCOME EG. SALE OF FIXED ASSET

omprakash kumawat (STUDENT ) (32 Points)
Replied 28 March 2009

i think there is a difference between income and receipt amount received from sale of fixed assets is not income. profit from sale of fixed assets is indirect income.

shaloo goel (Student CA Final ) (25 Points)
Replied 18 December 2012

Suppose if a proprietor is having a trading business of goods..if in addition to sale nd purchs of it..he is getting commission nd incentive on that goods. If dis cmmsn nd incentive is direct incm or indrct..suggest..

Suresh Kumar (Assistant Accounts) (46 Points)
Replied 16 August 2013

But could you tell me, How Duty drawback, DEPB and SHIS are Direct Incomes ?

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Umesh Agarwal (Others) (25 Points)
Replied 01 March 2014

Suppose if a proprietor is having a trading business of goods. In addition to sale and purchase of it..he is getting commission from Supplier for some orders directly taken up by Supplier from his region off his clientel list.

Will this commission be treated as DIRECT Income OR as INDIRECT Income??

---umesh.agarwal @ gmail.com

Shashin (Lawyer) (58 Points)
Replied 27 September 2016

Indirect Incomes are both recurring & non-recurring in nature, recurring & directly related to sales goes to Trading and remaining goes to P & L.

madhan kumar (accountant) (30 Points)
Replied 13 March 2018

i have received Trading Discount morethan 10lakhs which GST applicable or not

Siddharth Goel (Chartered Accountant) (3031 Points)
Replied 03 July 2018

Originally posted by : madhan kumar
	i have received Trading Discount morethan 10lakhs which GST applicable or not

Discount allowed before or at the time of supply, and it has been mentioned in the invoice separately, it will not be added in the value of supply. Hence, GST shall not be applicable on such discount.

Example: Company offers a 10 % discount on the sale of goods worth Rs. 200. If the company mentions the discount amount (Rs. 20) separately in the invoice, the value of the taxable supply will be Rs.180 (200–20).

Discount allowed after the supply, it may or may not be added in the value of the supply, depending upon following:

The discount has been allowed as per the terms already agreed upon before or at the time of supply, or
The discount can be linked directly to the invoice of supply,
The input tax credit (ITC) related to the amount of the discount allowed has been reversed by the recipient of the supply.

Then, GST shall be applicable only if the discount is not mentioned separately or is included in the value of supply of goods or services.

Jeeva Thangavelu (Student CA Final ) (609 Points)
Replied 03 July 2018

Duty drawback is not an extra ordinary or uncertain event. The onus for their receipt is established as & when the sale is made and are directly attirbutable. So they are to be treated as direct income.