STAMP VENDOR INCOME

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This discussion clarifies how stamp vendors should report their earnings. The consensus is that the income received from selling stamps, after purchasing them, should be treated solely as commission income, not as a purchase and sales transaction. This approach is supported by legal precedents and expert opinions, and it also addresses potential GST registration requirements.

Javed Memon

Javed Memon (Querist)
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22 December 2022 Respected Sir,
Stamp Vendor Purchase a stamp of rs. 80 Lakh and sale the same . He Received Commission for that Subject to tds

My question is this transaction Show in Income Tax as purchase and sales or only Commission income ?

If We Considered as Purchase and sales then GST Registration is Required ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 December 2022 Show only comission income.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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23 December 2022 To book as purchase and sale.
Inference -1) Ahmedabad Stamp Vendors Association v. Union of India (2012) 348 ITR 378(Guj). Supreme court also affirmed this.
2) Kerala stamp vendors Association Vs. O/o Accountant General (2006) 282 ITR 7 (Ker).
3) https://www.caclubindia.com/experts/stamp-vendor-920030.asp

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Javed Memon

Javed Memon (Querist)
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23 December 2022 Stamp Vendor Paid 80Lakh Rs. For Stamp and He Received Stamp of rs . 80 lakhs and Later on Commission 85000 Rs. Credited in His account after deduction of TDS u/s 194H, So in this Case Can we Show as Commisssion only ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 December 2022 Yes, in this case show commission only as TDS u/s 194H deducted.

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Javed Memon

Javed Memon (Querist)
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23 December 2022 Thanks a lot Bhaskaran Chackrapani Warrier and CA R SEETHARAMAN Sir

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 December 2022 You are welcome......

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