n!tE$h GarG (CA Final) (216 Points)
24 September 2010i want to ask that a ques. ?
if a cement merchant sold cement more than the target and for this company gave him commission,
so this comm. is a direct income or indirect income, if this is a direct income then it should be counted in turnover for calculation of turnover u/s 44AB
Varun.T.K
(CA Final, CS Executive)
(365 Points)
Replied 24 September 2010
The comission given by the company to the merchant should be treated as indirect income, since the income has arised on account of sale of primary product above the standard limit.
n!tE$h GarG
(CA Final)
(216 Points)
Replied 24 September 2010
if it is treated as indirect income then it will not effect firm's gross profit ratio.
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Originally posted by : n!tE$h GarG |
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i want to ask that a ques. ? if a cement merchant sold cement more than the target and for this company gave him commission, so this comm. is a direct income or indirect income, if this is a direct income then it should be counted in turnover for calculation of turnover u/s 44AB |
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JINESH SHAH
(PRACTICING CA)
(151 Points)
Replied 25 September 2010
it will be direct income as it is directly connected to the sale.. n it will be included in gross turnover for 44ab purpose.
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 25 September 2010
AGREED WITH JINESH
REGARDS,
MANOJ
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