Stamp vendor

This query is : Resolved

MANJUNATHA M.R (Querist)
Follow

15 March 2012 Dear Sirs, My friend is running Stamp Vendor Business doing Registration of Properties and documentation. Sometimes he purchased sites and sell them on later stage. My query is whether he falls under business or Profession or his income attracts Capital Gain and is there any limit to received commission on sale of properties and interest give me the correct picture of treatment of accounting entries.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

15 March 2012 i) Stamp vendors are getting 'discount' on the purchase and sale of stamps and stamp papers from government.
Citation :- Ahmedabad Stamp Vendors ..... Vs
UO1 (2002) 257 ITR 202 (Guj).
Discount is related to business and not to profession. So income of stamp vendor's has to be classified under the head "Income from business".
ii) Frequency of the transaction and intention of the assessee determines the head of income of the gain in land deal.

MANJUNATHA M.R

MANJUNATHA M.R (Querist)
Follow

15 March 2012 Thank you very much sir

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now