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Audit query

Others 263 views 3 replies
I am a mobile currency distributor please somebody guide me whether i should take sales as my turnover or Commission as my turnover
Replies (3)
Total COMMISSION would be taken as your Turnover.
ur commission will be taken as turnover..however if u issue invoice in his own name to customers then sale shall be taken as turnover
I have just answered the same question on a different thread named COMMISSION INCOME, you could see that by going in my profile and then go into my FEED.

Although I'm again sharing the relevant extract from there;



Whether to take COMMISSION as your Turnover or SALES as your Turnover is a question which depends upon the facts of the case. There is actually the concept of KACHHA ARHATIYA and PUCCA ARHATIYA which is first need to be understood;

1. Kacchha Arhatiya- 

Any commission agent which works ONLY FOR COMMISSION and has NO OTHER CONTROL over sale / purchase price or have no share in profit is called KACCHA ARHATIYA. This kind of Commission Agents needs to TAKE COMMISSION AS THEIR TURNOVER. 

2. Pucca Arhatiya - 

On the contrary of above; the commission agent which shares the part in profit and have some control over sale/purchase price is called PUCCA ARHATIYA. This kind of Commission Agents would TAKE SALES AS THEIR TURNOVER. 

Now coming to your query;

On the basis of your question I could assume that you work ONLY on commission basis and has no share in profit or control over price. Therefore you should take COMMISSION as your Turnover. 

(But you share some part in profit etc apart from your salary then you have to take SALES as your Turnover).


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