Hi every one,
kindly advise me on the following.
i am approached by some petrol pump owners of PSUs asking advise that if they give up the dealership given to them for company owned petrol pumps (given to them quite long back )so that the company may appoint a new dealer at company owned pumps, and in exchange the new dealer offers some amount to them ,on account of facilitating, nominating and giving opportunity to the new dealer. Will this amount be taxable. if yes, under which category and what shall be the rate of tax. Obviously the existing dealer is willing to give up the dealership so that he may get some money and pave the path for the next fellow to come in. other wise the existing dealership would also continue, company has no right to remove them as they are existing dealers.
regards,
Rajesh
CAclubindia
