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Question : 9
Total: 21
Giving valid reasons, explain how the following would be treated while estimating domestic income?
(i) Payment made by a Japanese tourist for goods purchased in India.
(ii) Broker's commission on the sale of second hand goods.
(i) Payment made by a Japanese tourist for goods purchased in India.
(ii) Broker's commission on the sale of second hand goods.
Solution:
(i) Goods purchased by foreign tourists are produced in the domestic territory. So, it will be included in domestic income,
(ii) It would be included in domestic income as he earned the commission by giving service and it was a productive service.
(ii) It would be included in domestic income as he earned the commission by giving service and it was a productive service.
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