Commission agent of transport business - treatment?

2192 views 1 replies

Dear Experts, 

Please guide me regarding the taxability of the following -

A) Mr. X is a commission agent who books lorries on behalf of other transporters, issues his invoice and receives the payment. 

    TDS is deducted on payments received and reflected in his FORM 26 AS

    He makes payment from his account to the other party and keeps only the commission for the service rendered.

    How will he be treated? Whether as Transporter or Commission Agent? 

    Also, can he file ITR 4s?

 

B) Mr. Y is a commission agent who books lorries on behalf of other transporters. 

    He does not issue any invoice and he DOES NOT receive any payment for goods.

    The two parties directly make payment to each other.

    He only acts as a mediator between two parties and receives the commission.

    How will he be treated? Whether as Transporter or Commission Agent? 

    Also, can he file ITR 4s?

Replies (1)

Both A and B's income will be taxed as commission.

ITR 4S cannot be filed since 44AD is not applicable for Commission Business.

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