for the AY 2017_18
incase of any telephone distributor (airtel)
what should be taxable turnover for above distributor.
is recharge is considered turnover?
or
is commissions received on recharge amount is considered as turnover?
please let me know...
AKSHAY PAL (ARTICLE) (88 Points)
28 February 2018
RAJA P M
("Do the Right Thing...!!!")
(127238 Points)
Replied 28 February 2018
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 28 February 2018
Recharge amount is Turnover and commission is your income.
VINEETH.R
(FINANCIAL ACCOUNTANT)
(458 Points)
Replied 28 February 2018
how could we can treat commission received as turn over ?
AKSHAY PAL
(ARTICLE)
(88 Points)
Replied 01 March 2018
@ Vineeth Sir
in the ICAI Guidance notes on Tax Audit, ICAI Explain the meaning of turnover in case of Agency relation.
The Statement on the Companies (Auditors' Report) Order, 2003
issued by the Institute in April 2004, while discussing the term ‘turnover’ in
paragraph 23 states `as follows:
The term, "turnover", has not been defined by the Order. Part II of
Schedule VI to the Act, however, defines the term "turnover" as the
aggregate amount for which sales are effected by the company. It may
be noted that the "sales effected" would include sale of goods as well
as services rendered by the company. In an agency relationship,
turnover is the amount of commission earned by the agent and not the
aggregate amount for which sales are effected or services are
rendered. The term "turnover" is a commercial term and it should be
construed in accordance with the method of accounting regularly
employed by the company
VINEETH.R
(FINANCIAL ACCOUNTANT)
(458 Points)
Replied 01 March 2018
@ AKSHAY PAL : Thank you for this information.Yes It is clearly stating that the agency turnover is the commission earned... 
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
