Turnover for tax audit
This query is : Resolved
Ramprasad G Shetty
(Querist)
29 August 2015
Dear All,
What is the turnover for advertising agent,
In my case an agent having TDS Credit on Total advetisement charges but his actual commission is 15% of Advertisment charges
Please mention the Section also
What is the turnover for advertising agent,
In my case an agent having TDS Credit on Total advetisement charges but his actual commission is 15% of Advertisment charges
Please mention the Section also
Amol S Joglekar
(Expert)
29 August 2015
for commission agent the turnover limit for tax audit is 1 crore.
29 August 2015
Amol Ji
ICAI Guidance note says 'advertising agency' is profession, therefore, turn over limit for tax audit will be Rs. 25,00,000 and not one crore.
Questioner
In the cited issue, 26AS figure may be followed to avoid litigation.
ICAI Guidance note says 'advertising agency' is profession, therefore, turn over limit for tax audit will be Rs. 25,00,000 and not one crore.
Questioner
In the cited issue, 26AS figure may be followed to avoid litigation.
Ramprasad G Shetty
(Querist)
01 September 2015
Dear Sir
In My case advertisement agent is collecting advertisement matter from his clients and gives to news paper publishers. Further, Advertisement agent receives full amount from the client and remits 85% to news paper publisher and retains 15% as his commission,
Whether the total amount received is taxable turnover of advertisement agent or only the commission?
Further, clients of advertisement agent deducted TDS u/s 194C and gross amount as per 26AS exceeded Rs.1 crore Whether Audit u/s 44AB is applicable.
In My case advertisement agent is collecting advertisement matter from his clients and gives to news paper publishers. Further, Advertisement agent receives full amount from the client and remits 85% to news paper publisher and retains 15% as his commission,
Whether the total amount received is taxable turnover of advertisement agent or only the commission?
Further, clients of advertisement agent deducted TDS u/s 194C and gross amount as per 26AS exceeded Rs.1 crore Whether Audit u/s 44AB is applicable.
Amol S Joglekar
(Expert)
05 September 2015
The limit is 1 crore in your case.
The TDS u/s 194C also supports the view that yours is a business which partakes the whole of activities rather than earning only commission.
The TDS u/s 194C also supports the view that yours is a business which partakes the whole of activities rather than earning only commission.
Amol S Joglekar
(Expert)
05 September 2015
There has always been a thin line of distinction. The advertising agency as envisaged in ICAI guidelines is an agency business. The example of this could be "Collection centres" of classifieds of newspaper. The receipt what a customer gets is that of newspaper and not the collection centre person.
I think, in the situation cited by querist, the situation is different. Although not a confirmatory test, the clients are deducting TDS u/s 194C and not 194 J. This is a very typical case of corporate world in India, that they catch hold of such a advt agency that extend a 60 days credit to companies while they have to pay the 85% within 15 days of insertion. Swuch agencies also undertake to edit the artwork, some times prepare the artwork and so on. And hence the limit is 1 crore.
Your views please.
I think, in the situation cited by querist, the situation is different. Although not a confirmatory test, the clients are deducting TDS u/s 194C and not 194 J. This is a very typical case of corporate world in India, that they catch hold of such a advt agency that extend a 60 days credit to companies while they have to pay the 85% within 15 days of insertion. Swuch agencies also undertake to edit the artwork, some times prepare the artwork and so on. And hence the limit is 1 crore.
Your views please.
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