Commission on exempted sales

This query is : Resolved

Gagann Nadig (Querist)
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13 August 2019 Dear Sir/madam,

An assessee is an APMC commission agent who earns 2% on the sales
He filed for exempted sales in GST . (As there is no separate column for commission in GST portal)
As he is a commission agent he neither purchases nor sells the goods.
So, while filing Income tax return, we can file under income from commission.
But the problem is that, there there will be probability of notice from IT office, as they usually match sales of GST with Income tax.
We cannot file under 44AD also. As his income is 2% of sales which will be below the limit of 8% as mentioned in this section.
Filing under 44AB becomes difficult for him, as he is not eligible to pay the increased accounting and audit fees.

Please suggest the way to file the income tax return.

Thanking You

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 August 2019 Treat income from commission as his turnover and claim expenses. When any notice received reply to the notice as he is only commission agent and for GST full turnover has to be disclosed by agents.

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