Agent turnover classification determines audit requirement; commission-only agents versus principal-like agents treated differently for turnover Applicability of the audit obligation under Section 44AB depends on whether an agent functions as an agent or as a principal; for agents like kachha arahtias only gross commission is counted as turnover, while for agents like pacca arahtias the total sales/turnover must be included. Characterisation requires examination of contract terms and functional indicators such as substitution of goods, liability to third parties, disclosure practices, dominion over goods, remuneration structure, personal interest in profits or losses, and indemnity arrangements.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Agent turnover classification determines audit requirement; commission-only agents versus principal-like agents treated differently for turnover
Applicability of the audit obligation under Section 44AB depends on whether an agent functions as an agent or as a principal; for agents like kachha arahtias only gross commission is counted as turnover, while for agents like pacca arahtias the total sales/turnover must be included. Characterisation requires examination of contract terms and functional indicators such as substitution of goods, liability to third parties, disclosure practices, dominion over goods, remuneration structure, personal interest in profits or losses, and indemnity arrangements.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
