Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Audit of adhatiya (broker)

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2012 Whether a Adhatiya (Broker) is covered under audit of Sec. 44AB of Income Tax Act,1961 if his total adhat is approx. 5 lacs and sale of commodities (guar gum & powder) done by him on behalf of different parties is approx. 2 crores in terms of turnover exceeding 60 lakhs for the F.Y. 2011-12 ??

Pankaj Gupta

Pankaj Gupta (Expert)

16 September 2012 I guess the broker in your case is a kachha ahartiya.And in case of kachha ahartiya, the ownership of the asset do not pass on to the broker.the title of the goods remain with the principal. Therefore the sales effected by him should not be included in the turnover for the purpose of sec 44AB . Only the gross commission is to be included for the purpose of audit.
Advises from other experts are open.

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2012 THANKS FOR YOUR SUGGESTIONS

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now