Meaning of Turnover in case of goods Transport Agent for Tax Audit

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This discussion clarifies the meaning of 'turnover' for goods transport agents facing a tax audit. Specifically, it addresses how to account for income when an agent receives funds from a company, pays the transporter, and retains a commission. The consensus is that the total amount received from the company (e.g., Rs. 10,000) should be considered the turnover, not just the agent's commission (e.g., Rs. 1,000), even if a direct bill wasn't issued to the company.

Amol

Amol (Querist)

13 June 2023 Dear please guide me to understand the meaning of turnover.

Our client is a goods transport agent business.

The client acts as an agent but he receives the amount from the company and from that he pays the truck owner and keeps his commission in his hands(Bank).

(Eg. My client received Rs. 10000/- from X Ltd and out of it he pays Rs. 9000/- to Mr. A (Truck Owner) and keeps Rs. 1000/- as commission.) also note that he has not issued any bill to X Ltd.

My question is what amount should be considered as turover while calculating its turnover?

Rs. 10000/-
Or
Rs. 1000/-