Mandi commission agents income tax return

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This discussion clarifies how mandi commission agents with a turnover of Rs 57 lakh should file their income tax returns. While GST declarations include the total sales and purchases of Rs 57 lakh, the income tax return should primarily reflect the actual commission earned (Rs 2.05 lakh). It's advised to file ITR 3 with Profit & Loss and Balance Sheet, showing the commission as income, and not the entire turnover, unless specific conditions apply. Section 44AB audit requirements are also addressed.

sachin Alwadhi

sachin Alwadhi (Querist)
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30 August 2021 Kindly guide client having Gst no for commission agent in mandi having turnover Rs 57 lakh for sales and purchases and generating Commission with 5%..In income tax return we need to show the annual turnover 57 lakh or not ? or Just need to show only 5% income and with 5% income which is less than 8% rate .44 AB is applicable or not.Kindly guide properly.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 August 2021 How you bill party? Only commission or with material?

sachin Alwadhi

sachin Alwadhi (Querist)
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30 August 2021 Tds deducted under u/s 194c and only commission

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 August 2021 What is the amount of TDS deducted?

sachin Alwadhi

sachin Alwadhi (Querist)
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30 August 2021 Rs 205000 commission and Rs 5666 is tds as per 26AS

sachin Alwadhi

sachin Alwadhi (Querist)
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30 August 2021 means i need to mention only commission income as a mandi commission agent.Need to show purchase sales of 57 lakhs with no profit and loss .Only commission income of Rs 205000/ as mentioned above

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 August 2021 Have you declared 57 lakhs as turnover in GSTR?

sachin Alwadhi

sachin Alwadhi (Querist)
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30 August 2021 yes just disclosure in gstr for 57 lakh with nil and exempted rates sales and purchase.

sachin Alwadhi

sachin Alwadhi (Querist)
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30 August 2021 yes just disclosure in gstr for 57 lakh with nil and exempted rates sales and purchase.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 August 2021 As total sale amount declared under GST, you should not declare just commission amount in ITR, though you may be just adhiya. As per books when the turnover is 57 lakhs, file ITR 3 with BS & P&L account, with all the details as per your books maintained. And offer the net commission received of Rs. 2.05L for tax assessment; along with your other income/s, if any.

sachin Alwadhi

sachin Alwadhi (Querist)
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30 August 2021 Any audit formality u/s 44Ab or not in above case

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 August 2021 As such no, provided you had not been covered by sec. 44AD(4) in any preceding AY.

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sachin Alwadhi

sachin Alwadhi (Querist)
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30 August 2021 Thanks a lot for quick support.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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