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Question ID : 38055

Talk time recharge TO

When mobile recharge coupons are received from and sold by distributor to retailer full value is recorded as value of supply for the purpose of GST. However for in reality distributor get only a commission and TDS is deducted for the purpose income tax. How does this turnover to be considered in Income tax return. Is it the full value (consider as a normal merchant) or only commission

Posted by Sai Ram on Mar 26, 2019

Filed Under Profits & Gains of Business & Profession

Answer ID : 76417

In this case if the distributor is acting as an agent , then only commission will be treat his turnover. However if the distributor is purchasing the recharge coupons from the company and then selling it to retailers , in this case whole amount will be treated as turnover.

Posted by CA. BISHT RAKESH on Mar 26, 2019