Income tax audit

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 October 2011 A is doing business of IDEA recharge card having different cost. Compamy is giving 4% deduction out of total bill amount against purchjase, in turn assessee is giving 2.75% discount to his retail traders.
Transaction is more than crore. In this case TDS is deducted on amount of discount allowed in bill, in addition to this some amount is deducted from on line payment for recharging of mobile by assessee or his retailer.
Total commission received is Rs. 600,000/- where fropm TDS is deducted as against transaction is more than Rs. one crore.
Under the circumstances whether he will be required to get his accounts audited under sect. 44 on basis of amount of transaction or his commission will be basis for counting limit for audit u/s. 44AB.
Thanks

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)

24 October 2011 For commission business, turnover for the purpose of section 44AB is commssion and not the total amount, hence commission will be the basis for determining threshold limit u/s 44AB.

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Querist : Anonymous

Querist : Anonymous (Querist)

25 October 2011 Bills for recharge vouchers are issued wherein cost of voucher and service tax is shown from total of this discount is given whether this discount will be treated as commission or will be the transaction of sale and purchase, though margin is fix for me and the amount to be given to retailer by me. Kindly consider the same for query of audit.

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2011 NO REPLY IS RECEIVED