Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Commission paid to doctors amount claim allowed

kollipara sundaraiah (B.com) (2916 Points)

09 November 2023

it assessess maintained a pharmacy Stores sales of medicines turnover rs:180 lacs yearly and commission paid to doctors rs:2 lacs.
question:
assessess commission paid to doctors amount business expenses claim allowed or disallowed in it act (sec 37 provision in it act)

Reply
Follow
Share

6 Replies

CA Raj Doshi (Practising CA) (8795 Points)
Replied 10 November 2023

Commission to Doctors is Not an allowable expense.

1 Like

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 10 November 2023

You may claim under consultancy fees if supporting documents are available.

Referral fees or commission may be claimed if it is in the ordinary of business unless it is illegal

RAJA P M ("Do the Right Thing...!!!") (127299 Points)
Replied 11 November 2023

Yes You can claim it's as expenses in actual nature as Commission and deduct TDS as Commission under sec 194H.

sabyasachi mukherjee (26189 Points)
Replied 11 November 2023

Max. doctors do not show.

CA Aman Rajput (Chartered Accountant) (8305 Points)
Replied 15 November 2023

Yes, the commission paid to doctors is a business expense that can be claimed as a deduction under Section 37 of the Income Tax Act. The commission paid to doctors is considered to be an expense incurred for the purpose of earning income from the pharmacy business. As such, it is allowable as a deduction under Section 37 of the Income Tax Act. It is important to note that the commission paid to doctors is subject to tax deduction at source (TDS) at the rate of 10%. The assessee is responsible for deducting TDS and depositing it with the Income Tax Department.

Musrath Shaik (175 Points)
Replied 16 November 2023

Business expenses incurred for the purpose of earning income are generally allowed as deductions under Section 37 of the Income Tax Act in India. However, the allowability of specific expenses, including the commission paid to doctors, is subject to certain conditions.

Here are some key points:

Section 37 of the Income Tax Act:
- Section 37 allows for the deduction of any expenditure (not being expenditure of the nature described in Sections 30 to 36) laid out or expended wholly and exclusively for the purpose of the business or profession.
Commission to Doctors:
- If the commission paid to doctors is incurred wholly and exclusively for the purpose of the pharmacy business, it may be considered a legitimate business expense.
  For further more detailed information on this topic visit: Pharma Distributors in Delhi - 2023 [Complete Details]
  
  To read more such trending content, visit Swipe Blogs.