44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2018 A person is registered as a seller on e-commerce companies for eg. at flipkart or snapdeal etc. and sells his products after purchasing different types of products and uploads the pictures along with price tag at online marketplace provided by e-commerce companies.
Whenever his product is sold, the e-comm company collects the payment on his behalf and remit to him after deducting their commission. All VAT etc is paid by seller.

Aall the sales proceeds are received through bank only.

Whether the person can declare his net profit u/s 44AD @ 8% or 6% on the basis of gross turnover received in his bank account which is received by him after e-commerce company's commission and other fee.

Also if there is any case law regarding this matter is available, please share the same.\

Thanks in Advance.

Arpit

Arpit (Expert)
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15 February 2018 No, your gross turnover shall be the amount at which the goods were sold i.e. the turnover shall be the amount before deducting the commission of e-commerce site

Dibin Divyakumar

Dibin Divyakumar (Expert)
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15 February 2018 You can declare net profit @6% as the credits are received in bank, But on Gross Turn over, ie the total amount of invoices raised to the customers. You cannot deduct the commission paid to E-Com operator.

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