Taxation

Kaccha Arhatia is basically a commission agent who works on behalf of principal and gets commission for his duties. Commssion income is his gross turnover. He prepare all the bills in his principles name, he has no authority to use his own name for the transactions.

Pacca Arhatiya make the transactions in his own name on behalf of principal, like distributor. Total sales of goods is his turnover.

More details refer:  incometaxindia/Circular/910110000902