Many CSC operators and Akshaya entrepreneurs face tax audit notices because they mistakenly file their gross customer collections as their taxable turnover instead of reporting only their net service charges and agency commissions.
Gross Collection vs Real Turnover
If a citizen pays Rs. 1,000 for an e-District application where Rs. 950 goes to the government treasury and Rs. 50 is the operator commission, your commercial revenue is Rs. 50—NOT Rs. 1,000. Recording the entire Rs. 1,000 as business turnover can artificially trigger mandatory GST registration or Section 44AB tax audits.
TDS Deduction under Section 194H
Commissions credited to your CSC wallet are often subject to 5% TDS under Section 194H or 194C. Always reconcile your Form 26AS / AIS annually against your ERP commission ledger to claim full tax refunds when filing ITR-3 or ITR-4.
Why Digital Cloud Accounting is Mandatory
Using a specialized ERP like Bolco ERP Seva ensures clear separation between pass-through statutory fees and billable service fees, providing clean audit reports for your Chartered Accountant.
Eliminate error-prone spreadsheets. Bolco ERP Seva automates counter ledger reconciliations, receipt printing, and token queues with complete audit safety.
Learn more about Bolco ERP Seva