Question

Giving valid reasons, explain how the following would be treated while estimating domestic income?

1. Payment made by a Japanese tourist for goods purchased in India.
2. Broker's commission on the sale of second hand goods.

Answer 1

1. The goods purchased by foreign tourists are manufactured in the country. As a result, it will be included in household income.
2. It would be included in his domestic income because he earned the commission by providing a productive service.