Commission on sales

This query is : Resolved

Ankit Saini (Querist)
Follow

12 November 2011 If I am a commission agent/broker. But the whole monetary transaction is Going through my bank account, then it will be Considered as trading business or there is no problem in making transactions through my account??? For eg: I sell fruits on behalf of a Farmer and the customer pays full amount to me then i deduct my commission from it and pay the balance amt to the farmer... Is there any problem in doing transactions like this or i have to show this as a trading business and go for Audit if transaction crossess 60 lakhs??

Ram Avtar Singh

Ram Avtar Singh (Expert)
Follow

12 November 2011 you are receiving hole mony and paying to former. so you are not commission agent.

Ankit Saini

Ankit Saini (Querist)
Follow

12 November 2011 Thanks For reply

I am working as a commission agent.

But the monetory transactions are moving through my account.
Is there any solution??

Vishal D Shah

Vishal D Shah (Expert)
Follow

13 November 2011 Once you get money, you become buyer as risk of seller vanishes and a contract gets concluded. This shall be regarded as trading purchase and sell.
Solution is you get out of money flow and take only commission.

Message likes : 1 times

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