Sale of Easy Recharge

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Amit Jain (Querist)
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14 February 2017 Suppose A is a sub distributor of BSNL easy recharge. He has a turnover Rs 50 Lakhs. He is earning Rs. 25,000/-. On his earning no TDS was deducted. Now my question is that whether section 44AD will be applicable in this case and his earning will be assumed 8 ℅ * 50 Lakhs = 4 Lakhs.

darvin pipalia

darvin pipalia (Expert)
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14 February 2017 section 44AD is not applicable to person earning commission or brokerage income. normal taxation provisions will apply

Amit Jain

Amit Jain (Querist)
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14 February 2017 As no TDS was deducted from his earning. Hence whether the earnings can be treated as commission income

darvin pipalia

darvin pipalia (Expert)
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15 February 2017 nature income doesn't depend upon tds deduction. if it's commission income then even if no tds is made, it will remain commission. and even for Section 44AB in case of commission income, turnover to be considered is portion of commission and not the gross turnover on which it is received.

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