Cellular company distributor

This query is : Resolved

Manju (Querist)
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31 July 2011 One of my client distributor of idea cellular limited and he get 15,60,000/- commission for the sale of sim cards and currency (talk time Vouchers) and tds deducted on this is 1,51,520/- his turnover cross 60.00lakhs hence it is liable to audited under S.44AB

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 August 2011 You have to show your Gross Receipts of15,60,000/ i.e Commission Income only.

Suppose, I am selling flats for a builder,
and receiving commission @ 2% from him.
By selling flats worth Rs.70.00 lac I get commission of1.40 lac.

Q 1.Whether Rs.70.00 lac is my Turnover or gross receipts?
If it's so then tax audit becomes necessary. But in fact, my Gross Receipts is Rs.1.40 Lacs Only.

Q .2 Whether Rs.70.00 lac is the Turnover or gross receipts of the builder ?
ANS = Yes.

So Tax Audit will not be required in this case, until the commission amount rises beyond60.00 lacs.

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