Commission as business income
This query is : Resolved
29 June 2012
I have a business of trading in cotton printed fabrics. Its total turnover is less than 60lakhs. but in the Income other than trading profit it also includes a commission income of 300000. excluding this as income will make the profit less than 8% and such attract tax audit. But if I consider this commission as business income than profit will be above 8%.
I want to know if this comission can be included in business income??
The commission is actually related to the brokerage of paints which are used in printing of cotton fabrics and as such can be said to be related to business and also proper tds has been deducted
I want to know if this comission can be included in business income??
The commission is actually related to the brokerage of paints which are used in printing of cotton fabrics and as such can be said to be related to business and also proper tds has been deducted
29 June 2012
Hi my friend,
You have to read amendment carefully.
COMMISSION INCOME IS OUT OF SCOPE FROM U/S 44AD.
for commission income treat as normal income under head profit and gains from business or profession.
You have to read amendment carefully.
COMMISSION INCOME IS OUT OF SCOPE FROM U/S 44AD.
for commission income treat as normal income under head profit and gains from business or profession.
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