Commission income & expense

Question 1

Commission Income

Petrol pump agency?

Advertising agnecy?

• What if received from Ind/AoP
• What if received from Co.

Other Agncy Commission income?

Answer 1

Petrol pumps 156A – Final Tax, 12%

Advertising (All)– S233 - When paid by Individual & Unregistered AoP, no WH; Minimum commission considered 15%; Calculation gross up Ex. Commission amount of advertising services by 85% and apply tax % to 15% of grossed up amount. A/85x15xtax rate (10%); Tax Deducted Minimum Tax

Others -233, When paid by Individual & Unregistered AoP, no WH; General Rate 12%; Tax Deducted Minimum Tax

Question 2

Commission expens

DNA or allowed

Answer 2

Allowed as expense when

For Retail goods (3rd Sch ST) - If dealer (other than under dealership agreement) is not on ATL, expense upto 0.2% of Gross allowed. Above DNA

For Retail goods (3rd Sch ST) - If dealer (who is under dealership agreement) is not on ATL, amount=salesx10%x75%