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What Is The Limit Of Turnover For Stamp Vendor U/s. 44AB?

QUERY: The Government of Maharashtra have appointed authorised Stamp Vendor to sell stamp papers and other stamps at fixed rate of commission and he purchases stamp papers from stamp office after deducting his commission amount from value of Stamp paper. The total stamp paper purchased during the year exceeds Rs. 60 lakhs in F.Y. 2011-12 but commission amount is approximately Rs. 2 lakhs. Whether provision of section 44AB is attracted?
ANSWER: Click here to read the full answer of the expert

Section 44AB reads as “every person carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds sixty lakh rupees in any previous year”.

Thus, the section refers only to credit side of Profit & Loss account

Posted in Income-tax