N Das (177 Points)
15 July 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(182812 Points)
Replied 15 July 2018
Yes ...
Hope, turnover for the commission is calculated as per ICAI guidelines....
N Das
(177 Points)
Replied 15 July 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(182812 Points)
Replied 15 July 2018
For an agent, turnover is the commission earned by him and not the aggregate amount for which sales are effected or services are rendered.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(182812 Points)
Replied 15 July 2018
Extract from Page 24.......... of https://resource.cdn.icai.org/34728gn-taxaudit-dtcicai.pdf
"""5.12 (a) A question may also arise as to whether the sales by a commission agent or by a person on consignment basis forms part of the turnover of the commission agent and/or consignee as the case may be. In such cases, it will be necessary to find out, whether the property in the goods or all significant risks, reward of ownership of goods belongs to the commission agent or the consignee immediately before the transfer by him to third person. If the property in the goods or all significant risks and rewards of ownership of goods continue to belong to the principal, the relevant sale price shall not form part of the sales/ turnover of the commission agent and/or the consignee as the case may be. If, however, the property in the goods, significant risks and reward of ownership belongs to the commission agent and/or the consignee, as the case may be, the sale price received/receivable by him shall form part of his sales/turnover.
(b) In this context, it would be useful to refer to the CBDT Circular No.452 dated 17th March, 1986, where the Board has clarified the question of applicability of section 44AB in the cases of Commission Agents, Arhatias, etc."""
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