Taxable turnover excludes amounts contractually remitted to a principal; only the dealer's retained commission-like receipt is includible.

Amounts collected by a dealer under a contractual obligation to remit the bulk to the principal-manufacturer do not constitute the dealer's own trading receipt. Only the amount actually retained by the dealer and attributable to its business is includible in taxable turnover; the balance remitted to the principal falls outside the dealer's turnover. On that basis, the court held that the entire collection on sale of application forms for scooter bookings was not taxable in the dealer's hands, and only the retained amount could be assessed.

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Issues: Whether the entire amount received on sale of application forms for booking scooters was includible in the dealer's taxable turnover, or only the amount retained by the dealer after remitting the balance to the principal-manufacturer.

Analysis: The amount of Rs. 4 per form was payable under a contractual obligation to the principal-manufacturer and was not part of the dealer's own trading receipt. Only the Re. 1 retained by the dealer could be treated as attributable to, or incidental to, the dealer's business. The balance, having been remitted to the principal, did not form part of the dealer's turnover.

Conclusion: The entire amount received was not taxable in the hands of the dealer. Only the amount retained by the dealer was includible in taxable turnover, and the question was answered in favour of the assessee and against the Revenue.

Ratio Decidendi: Amounts collected by a dealer which are contractually payable to and remitted for a principal do not form part of the dealer's taxable turnover; only the amount actually retained in connection with the dealer's own business is includible.

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