Amount to which tax is applicable
This query is : Resolved
11 March 2015
Dear Sir,
There is company XYZ outside India.
There is person ABC who is helping me to purchase raw material for his company. ABC belongs to XYZ country. I need to give commission of about 40% from profit to ABC.
So I want to know on how much amount I have to pay Income tax. Is it on 100% of commission or on 60% only that belongs to me?
Regards,
Ashish Shaha
There is company XYZ outside India.
There is person ABC who is helping me to purchase raw material for his company. ABC belongs to XYZ country. I need to give commission of about 40% from profit to ABC.
So I want to know on how much amount I have to pay Income tax. Is it on 100% of commission or on 60% only that belongs to me?
Regards,
Ashish Shaha
11 March 2015
You have to pay Income tax on 60% only. Account 100% income and show 40% expenses as commission. Have an agreement with ABC for payment of 40% commission.
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