When a company sell on payment to distributor, how we can say that the company is the owner? If a distributor has purchase from company on payment basis ad some thing happen in the godown of distributor and all the stock lost whether the loss will be on account of the company (Principle).

Further in recharge voucher business / E-topup business some distrubutor charging the total amount and deducting 2 to 3 percent margin. Whether it is not commission?.

Dear Bimal,

M=Manufacture, D=Distributor, R=Retailer, C=Customer.

1). In the process of the chain each one becomes the owner of the goods, hence whatever income generated is called as SALES(In these cases risk element is involved so profit is the reward). so in these cases commission is not paid there is a profit element for each person in the chain.

2). In case of dealership there is no risk element involved, so fixed percentage of COMMISSION is normally provided.

They are agents and distributing the recharge vouchers. They get commission and it is their only income.

So It is not sale. Commission income alone will be accounted.

i knw one person from whom i purchase mob refill voucher,he takes from me exactly what is printed on voucher,as well when i do direct refilling he takes the same amount,so is he having profit on sale of vouchers & commission income ????nd how he will account for these in the books??????

Sir can i know the section under which it covers

Which ITR form should be filed for such income? Can we file ITR 4?

My client is a distributors of idea agency. He is selling recharges, sim cards and recharge coupons. For the purpose tax audit, what will be considered as a turnover? Whether income received from sale of recharge coupons shall be considered as a turnover or only commission income shall be condidered as a turnover?

my client has already considered his currency sales as turnover and he has paid GST on the same. His turnover including the Currency sales in around Rs 1.41 crores and purchase including currency voucher is Rs 1.40 crores , He gets around 2% commission from it , however in his PAN Rs 24.25  lakh is being reflected as commission,  now please help me how can his income be declared.