Dear Respected Members
PLEASE TELL IF A PERSON WHO IS YARN BROKER. THE NATURE OF HIS BUSINESS IS THAT HE SOLD THE YARN OF MANUFACTURER TO TRADER ON CREDIT BASE. MANUFACTURER SENDS YARN TO TRADER AND BILLS MAKE IN THE NAME OF TRADER. WHEN TRADERS MADE PAYMENT TO MANUFACTURER THE MANUFACTURERS GIVES ONE PERCENT BROKRAGE TO YARN BROKER ON TOTAL PAYMENT AMOUNT. HIS TOTAL COMMISSION OR BROKERAGE RECEIVED IN THIS WAY IS 4 LAKHS IN YEAR. I HAVE FOLLOWING QUERIES RELATING TO THIS CASE:
1. IS THIS PERSON LIABLE TO MAINTAIN BOOKS AS PER LAW
2. CAN HE OPT FOR ITR 4S AND ASSUME PROFIT AROUND 80%
3.IF HE WANT TO CLAIM NO BUSINESS EXPENSES AGAINST HIS TOTAL BROKERAGE CAN HE FILL ITR 1 INCOME FROM OTHER SOURCES AND SHOWS ALL 4 LAKHS HE RECEIVED AS HIS NET INCOME AND PAID WHAT TAX APPLICABLE ON HIM.
4.IF HE WANT TO CLAIM EXPENSE OF PETROL AND VEHICLE MAINTENANCE AS HE HAS NO OFFICE AND NO OTHER EXPENSES IN THIS CASE IS HE REQUIRED TO MAINTAIN BOOKS?
CAclubindia
