Commission

Hi,

One of my client is doing fishery products business. He is purchasing goods from farmers (who grow fishery products) and selling goods to the exporting companies. He is collecting money from companies through cheque and paying money to the farmers in cash. I consider this as trading for tax purposes. But he is telling that he receives only the commission. Companies fix the commission for eg. Rs.2 per kg. but he was paid the full amount by the companies. And he is paying the amount for the farmers.

Can anyone tell me whether this is trading business or commission?

Thanks in advance

Thanks and Regards,

Arun