Income tax

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B.Com
134 Points Posted on 25 October 2020
sir, my friend is running partnership firm in commission agent , pluses business, in current account credits Rs.3 croes they cash withdraw from 3 croes , bank deducted TDS u/a 194N @ 2%, he should be audited or only declared Commission
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On 25 October 2020 at 14:42 Report
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This discussion clarifies whether a commission agent business with a Rs. 3 crore turnover, involving the purchase and sale of pulses, requires an audit. The query centres around a 2% TDS deduction under Section 194N. The consensus is that if the business involves trading pulses and generating a commission, an audit is indeed necessary.

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Tax consultant
5895 Points Posted on 25 October 2020
Is his commission is 3cr then yes he needed to be audited
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On 25 October 2020 at 15:01
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B.Com
134 Points Posted on 25 October 2020
Only 2^ on 3 croes
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On 25 October 2020 at 15:35
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Accountant
3662 Points Posted on 25 October 2020
If commission only 2% of 3 cr. i.e. Rs. 6 Lac

Why Bank account credited with Rs. 3 cr. ?
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On 25 October 2020 at 15:42
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B.Com
134 Points Posted on 25 October 2020
Formers bring pluses to him firm sell to others trades, traders give cheque
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On 25 October 2020 at 15:46
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Accountant
3662 Points Posted on 25 October 2020
As per your query, your friend first purchase pluses from farmers then sold to traders and earned 2% margin
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On 25 October 2020 at 15:54
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B.Com
134 Points Posted on 25 October 2020
Yes correct
1 Reply
On 25 October 2020 at 15:57
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Accountant
3662 Points Posted on 25 October 2020
Audit is required
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On 25 October 2020 at 15:59
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493 Points Posted on 25 October 2020
Please clear that is your friend doing trading of pulses or just working like in mandi persons working as a broker (Aadti)?
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On 25 October 2020 at 22:19
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204 Points Posted on 26 October 2020
Audit is reqd
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On 26 October 2020 at 15:29

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