Turnover for the purpose of income tax for disdtributor of

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my client is Distributor of idea cellular co and Idea Is also dedudcting TDS on Commission on sale of Recharge vouchers , now my Question is Whether only commission is turnover  or entire recharege sale is turnove of my client for income tax purpose ?

Recharge voucher Of rs 100 , he gets same from idea rs 96 and on differential 4 rs idea is also deducting tds , now my Qustion my Client who is distributor of Idea have turnover of whole Rs 100 or Rs 4 commission only turnover for income tax purpose

 

 

 

Replies (5)

subject  to  billing system  adopted by the  vendor, the  crieria  can  be  discussed,

 

 usually  the commission is  income,  the  telephone  company use the  dealer  as their  franchize, and the  dealer is only  collection  agent on the behalf of company,  retaining his commission

 

however if the dealer is making payment by cheque, and  billed by the company for the gross  value, then it would  come  under  distributorship  trade business. 

distributor is payment payment by rtgs in the bname of idea and idea providing recharge of 95.6 after deducting 0.4 tds on commision of  Rs. 4

and thered is distibutorship agreement between idea comapny and my client

hi u s sharma sir

i am not getting this line of ypur reply

" however if the dealer is making payment by cheque, and billed by the company for the gross value, then it would come under distributorship trade business."

when  TDS certificate is  in hand, then   view  is  clear of  turnover  :)  so  its  commission,  not  turnover  

do u mean commision should be shoun in sale side of p&L not actual sale of recharge ?


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