Changeability of Commission Income

TDS 1256 views 8 replies

Commission Recd. during the course of business from supplier, they aslo dedect TDS on t same under 194 H. Under which Head tha said comm. is charge IOS or PGBP ? the said comm. have direct nexus with Business .

Replies (8)

in P/L account, indirect income, commission received, ( IOS)

yes credit the commission to p and l ac. it is taxable under pgbp

AGREE WITH ABOVE

credit in p/l. chargeble under PGBP.

Dear Member,

As per my opinion follwing entry should be passed for proper books keeping..

1.Commission A/c  Dr     xxx

      To P&L A/c                          xxx

If your main business is to take commission and do business with supplier then Income will be treated as PGBP.In any other case It will be IFOS.

 

Regards,

Ronak Darji

taxable in PGBP

Dear CCI Members , Thanks for replies. Mr. Ronak , i am agree with you but do you have any case law etc in supporting the same, because in my case the main business is trading and assessee incurred Expenditure against said commission, which is included in indirect epxenses and it is impossible to segregate the same . And furthure  i am not concern with accounting entries please explain the taxation implication only..................................

Thank in Advance ................................. 
 

As u are saying that expenses  against commission are included in Indirect expenses,than  it has to be  surely included in income of business i.e.P/L A/c of Business.


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