Very urgent agency business - tax audit or not?
This query is : Resolved
25 October 2017
Greetings everyone,
My Query is My friend is doing Telecom Agency Business. He pays money to the Telecom company and gets talk time including the commission. He e-recharges the talk time to the customers. During the Last previous year he has made revenue of around 44 lakhs commission. His total deposits to the company and e-recharges amounts to around 25 crores.
My Question is under what section he has to file.
1. whether he comes under Tax Audit as his total total recharges exceed tax audit limit or comes under normal case as his commission is less than 2 crores.
2. Whether Commission business comes under business or profession?
3. If profession he comes under tax audit as his profit is less than 50% of the turnover?
My Query is My friend is doing Telecom Agency Business. He pays money to the Telecom company and gets talk time including the commission. He e-recharges the talk time to the customers. During the Last previous year he has made revenue of around 44 lakhs commission. His total deposits to the company and e-recharges amounts to around 25 crores.
My Question is under what section he has to file.
1. whether he comes under Tax Audit as his total total recharges exceed tax audit limit or comes under normal case as his commission is less than 2 crores.
2. Whether Commission business comes under business or profession?
3. If profession he comes under tax audit as his profit is less than 50% of the turnover?
26 October 2017
1 Tax audit not applicable as commission income is less than 2 crore.
2 It is a business income.
2 It is a business income.
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