Direct & Indirect Income

 direct income means which is related direct to business for example if a trader get  target discount on certain amount of  purchase from his suppliers then it will credited to trading account as direct income and other incomes that does not closely related to business treated as indirect income for example if interest received on fixed deposit that is not closely related to routine business 

DIRECT INCOME IS THE INCOME WHICH IS DIRECTLY RELATED TO YOUR TYPE OF BUSINESS EG... SALE OF GOODS

INDIRECT INCOME IS INCOME WHICH IS NOT REGULAR TYPE OF INCOME EG. SALE OF FIXED ASSET

 i think there is a difference between income and receipt amount received from sale of fixed assets is not income. profit from sale of fixed assets is indirect income. 

But could you tell me, How Duty drawback, DEPB and SHIS are Direct Incomes ?

Suppose if a proprietor is having a trading business of goods. In addition to sale and purchase of it..he is getting commission from Supplier for some orders directly taken up by Supplier from his region off his clientel list.

Will this commission be treated as DIRECT Income OR as INDIRECT Income??

---umesh.agarwal @ gmail.com

Indirect Incomes are both recurring & non-recurring in nature, recurring & directly related to sales goes to Trading and remaining goes to P & L.

i have received Trading Discount morethan 10lakhs which GST applicable or not

Originally posted by : madhan kumar
	i have received Trading Discount morethan 10lakhs which GST applicable or not

Discount allowed before or at the time of supply, and it has been mentioned in the invoice separately, it will not be added in the value of supply. Hence, GST shall not be applicable on such discount.

Example: Company offers a 10 % discount on the sale of goods worth Rs. 200. If the company mentions the discount amount (Rs. 20) separately in the invoice, the value of the taxable supply will be Rs.180 (200–20).

Discount allowed after the supply, it may or may not be added in the value of the supply, depending upon following:

• The discount has been allowed as per the terms already agreed upon before or at the time of supply, or
• The discount can be linked directly to the invoice of supply,
• The input tax credit (ITC) related to the amount of the discount allowed has been reversed by the recipient of the supply.

Then, GST shall be applicable only if the discount is not mentioned separately or is included in the value of supply of goods or services.

Duty drawback is not an extra ordinary or uncertain event. The onus for their receipt is established as & when the sale is made and are directly attirbutable. So they are to be treated as direct income.