24 May 2012
Under Section 44AB of the Income Tax Act, how is the gross turnover/receipts calculated in the case of a commission agent?
Please look into the following two aspects.
1. Is an audit u/s 44AB mandatory only if the commission exceeds Rs. 60 lakhs.
2. Assuming a selling commission agent earns a commission of 2%, and the sales effected by him are Rs. 60 lakhs, and his commission income on it turns to be Rs. 1.2 lakhs, is he liable for tax-adit u/s 44AB given his turnover/sales exceeds Rs. 60 lakhs?
CAclubindia
