Dear Friends
A person carries on the business of recharging prepaid mobile phones and distributing SIM Cards.
He sells recharge card of about Rs.4-5 lakhs per month, from which he gets 1% margin/commission..
Now i know that commission is the basis for determining 40 lakhs turnover for tax audit, but there is a problem.
The mobile phone company is deducting TDS on the entire value of SIM card distributed by him. So should we take the amount received by him as the turnover of his business
If that is the case then his tunover will exceed the limit prescribed U/s 44AB.
Please give your expert opinion
Urgent!
Thanks in advance
CAclubindia
