Query Regarding Turnover in Income Tax in Case of Commission Based Recovery Agent.Report
Please briefly explain why you feel this question should be reported .
My client is a Commission Based Recovery Agent of a Finance Company (Hero Fincorp).
His Staff go to various lenders of Finance Company ( Hero Fincorp) and receive Cash on behalf of Finance Company (Hero Fincorp) and deposit that received amount into My Client\’s Current and Saving Account.
Thereafter my client transfers this amount from his Saving/Current Account to the Account of Finance Company (Hero Fincorp).
Thereafter Prepare bill for Commission and send it to the Finance company (Hero Fincorp), upon receiving the same the Finance Company (Hero Fincorp) Pays the Billed Commission amount to the Account of My Client (Recovery Agent).
Now the Problem area while preparing for the audit of my client (Recovery Agent) is :
1. In GST return Turnover is shown only Commission Received.
2. TDS Deducted only on Commission @ 5% in 26AS. (Commission in GST Return and Form 26AS is Matched)
3. But the Saving/Current Bank Account Shows Much more amount Transacted (Cash Deposited by Staff and Transferred to Finance Company) over and above commission.
Please Guide me Sir. I am worried with higher cash deposited in my client\’s Bank Account.
I asked my client to deposit the cash collection from the lender directly to Hero Fincorp then he told me that it will create problems in calculating and paying commission.
Many recovery agents Follow the same practice as followed by my client (Cash Deposited by Staff and Transferred to Finance Company).
Proper Books and records are maintained in which Details of Cash receipt and Deposited on behalf of Finance company is Matched.
Please Suggest the Best.
0Income Tax 4 weeks 0 Answers 28 views 0