As the seller is illtrate he used to take only cash.But the purcahser sent the amount(includes broker commission) into bank account of agent for paying in cash to seller.there are huge number of transactions like this in a bank statement of agent.these transactions are 3rd party transactions which are not taxable in his hands and he has to pay tax for commission receipts.am i correct?
Seems to be correct, but correlate invoices with the cash deposits, and purchase invoice of the sundry creditors with cheque payments.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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Naveen Fintech Pvt Ltd
Kolkata
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