I had a remittance business (agency of an international company) for which I was paid commission on such remittances, typically Rs 100/- per transaction. This was paid by the international company on a post TDS basis. I got an enquiry from IT asking me to pay turnover tax and they claim that turnover is the aggregate of the remittance amount while I believe my turnover is aggregate of the commission earned. I am trying to understand who's correct here and is the IT guy simply trying to pressurise bcoz logically, if I pay a tax on the turnover based on remittance amount I will end up paying more tax than my income which defeats the logic of "income" tax ! Pls help clarify.
CAclubindia
