Tax audit

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dattatraya (Querist)

27 July 2013 Mr A is a commission dealer in second hand car. He gets cheque in his name from his customer & pays from his account to the original car owner i.e He received Rs 3 lakhs from his customer & pays Rs 2.50 lakhs to original owner & remaining is his commission. In FY 2012-13 his bank statement shows total receipts of Rs 4 Crore & payments of Rs 3.90 crore. Is he liable for tax audit? Does he required to get himself register under VAT?

CA UMESH DULAL

CA UMESH DULAL (Expert)

27 July 2013 As far as income tax is concern, he has to get his accounts audited.

In case of VAT, he does not get registered under VAT if the vehicle is directly transferred to purchaser without transferring in his name.

dattatraya

dattatraya (Querist)

27 July 2013 & how should i show it? Is it ok if i show like total payments = total receipts & excess of receipts over payment as commission under indirect income

CA UMESH DULAL

CA UMESH DULAL (Expert)

27 July 2013 under direct income

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