Turnover for a Transport commission agents

[Ajay Sharma]

Dear professional,

Kindly guide on the turnover of transporter commission agents

For example 

As an agent, i hire a truck for Rs. 48000 and further rent out for Rs 50000.00. 

My commission is Rs.2000.00. So on, with different rates and different commission amounts.

So what will be the turnover considered in GST and Income tax?

Regards 

Ajay

[Madhukar, Challa]

If you are raising the invoice for Rs 50,000, after renting the truck for Rs 48,000 you do not fall under the definition of agent.
Hence s 50,000 X No of invoices raised, will be treated as income.

Thanks & Regards,
Challa Madhukar

Sent from Linux Thuderbird email..

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[CMA Suresh S Sountyal]

In this scenario, you are acting as a service provider, not a commission agent.

A commission agent, means, in the general sense. who arrange a meeting/negotiation of two people, and charge a certain % or amount of proposed transaction.

Here are you are playing two roles:

1. you are consuming service of hiring of the truck of Rs. 48,000/-, and

2. you are providing services of sub hiring of the truck of Rs. 40,000/-

Hence,  Rs. 50,000 will be your turnover/revenue, and Rs. 48,000/- will your expenses and Rs. 2000 will your net/gross income,

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