02 March 2012
one of our client is doing business for xyz ltd. he brings clients who invest in the company and he get a commission.
investment should be by cheque mode only and third party cheques are allowed. my client deposit cash of the clients and then issues cheque from his own bank account.
now suppose there is credit of Rs.100000(clients cash dep) and withdrawal of Rs.10000(client money invested).
what will be the implication of above transaction for income tax calculation ?
03 March 2012
there has no any tax implication on transaction which is doing only for client.deposit and withdrawal for investment.but taxable is commission received from company.if your client is after deducting commission amount remaining amount of client paid than also company has to paid TDS in govt. account.
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