29 October 2012
In case of Scrutiny of one of my Client "IOCL Dealer" We have shown The Trading business of Purchase & Sale of LPG Gas, Assessing Officer want to Treat it Sale of LPG Gas on Commission (Saying that there is no Trading)
I want to ask whether I am right in showing the Transaction as Trading Business
29 October 2012
Hi, It's depend on the contract/agreement(if any) between IOCL and your client. If terms of the contract says that IOCL will sell the goods to your client and then your views are correct and if there is no contract, we will have to see whether ultimate risk and rewards getting transferred to your client by IOCL to treat transactions as trading activities along with other facts of the case. Other experts views are also welcome.
11 November 2012
The purchase and sale depends on the nature of payment. If you pay for the one truck or so on and then after selling the LPG you deposit the money, collect tax from customer and pay it to the State then it is Sales. Your margin is fixed and hence it cannot be said that it is commission earned by you. ITO is not correct. You have to convince him.
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