Incentives on Sales

Tax queries 1435 views 7 replies

i want to ask that a ques. ?

if a cement merchant sold cement more than the target and for this company gave him commission,

so this comm. is a direct income or indirect income, if this is a direct income then it should be counted in turnover for calculation of turnover u/s 44AB

Replies (7)

The comission given by the company to the merchant should be treated as indirect income, since the income has arised on account of sale of primary product above the standard limit.

if it is treated as indirect income then it will not effect firm's gross profit ratio.

 

 

Originally posted by : n!tE$h GarG


i want to ask that a ques. ?

if a cement merchant sold cement more than the target and for this company gave him commission,

so this comm. is a direct income or indirect income, if this is a direct income then it should be counted in turnover for calculation of turnover u/s 44AB

it will be direct income as it is directly connected to the sale.. n it will be included in gross turnover for 44ab purpose.

AGREED WITH JINESH

 

REGARDS,

 

MANOJ

Yes, Agree with Jinesh Shah.

Yes,

Agree with Jinesh Shah.

direct income


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