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Whether business commision received from abroad is taxable?

764 views 3 replies

Subhash Saluja

Accountant

40 Points Posted on 24 December 2009

I am int he businees of import of electrical items from Turkey. I am receving commmsion from the foreign party on the contracts secured with my help for supply of electrical items to directly Indian parties. The payment of supply is made dictly made to foreign party by indian party and I receive commision from party for assistance provided by me for securing the order for foreign party. I want to know such amount received as commision by me from foregn party in foreign current is taxable, if taxable whether the whole amount or some part of it.

Replies (3)

Amir

Learner

4016 Points Posted on 25 December 2009

As per Sec 5 which determines the scope of income, the commision received in the present case is taxable in following cases:-

case 1 - if your residential status is ROR because then global income is taxable..

case 2 - if your residential status is RNOR / NR and the amount of comission is received in India...

It wil not make any difference that you have received in INR or Foreign Currency..The entire amount is taxable..But you can claim expenses what you have incurred in earning that comission like Telephone charges, or Depreciation on Computer, etc