Answer Posted / r.sivaraman

Under Sec 44AD of Indian Income Tax Act, 1965 says

1) Notwithstanding anything to the contrary contained in
sections 28 to 43C, in the case of an assessee engaged in
the business of civil construction or supply of labour for
civil construction, a sum equal to eight per cent of the
gross receipts paid or payable to the assessee in the
previous year on account of such business or, as the case
may be, a sum higher than the aforesaid sum as declared by
the assessee in his return of income, shall be deemed to be
the profits and gains of such business chargeable to tax
under the head Profits and gains of business or profession:

Provided that nothing contained in this sub-section shall
apply in case the aforesaid gross receipts paid or payable
exceed an amount of forty lakh rupees.

(2) Any deduction allowable under the provisions of
sections 30 to 38 shall, for the purposes of sub-section
(1), be deemed to have been already given full effect to
and no further deduction under those sections shall be
allowed

[Provided that where the assessee is a firm, the salary and
interest paid to its partners shall be deducted from the
income computed under sub-section (1) subject to the
conditions and limits specified in clause (b) of section
40.]

(3) The written down value of any asset used for the
purpose of the business referred to in sub-section (1)
shall be deemed to have been calculated as if the assessee
had claimed and had been actually allowed the deduction in
respect of the depreciation for each of the relevant
assessment years.

(4) The provisions of sections 44AA and 44AB shall not
apply in so far as they relate to the business referred to
in sub-section (1) and in computing the monetary limits
under those sections, the gross receipts or, as the case
may be, the income from the said business shall be excluded.

81[(5) Nothing contained in the foregoing provisions of
this section shall apply, where the assessee claims and
produces evidence to prove that the profits and gains from
the aforesaid business during the previous year relevant to
the assessment year commencing on the 1st day of April,
1997 or any earlier assessment year, are lower than the
profits and gains specified in sub-section (1), and
thereupon the Assessing Officer shall proceed to make an
assessment of the total income or loss of the assessee and
determine the sum payable by the assessee on the basis of
assessment made under sub-section (3) of section 143.]

82[(6) Notwithstanding anything contained in the foregoing
provisions of this section, an assessee may claim lower
profits and gains than the profits and gains specified in
sub-section (1), if he keeps and maintains such books of
account and other documents as required under sub-section
(2) of section 44AA and gets his accounts audited and
furnishes a report of such audit as required under section
44AB.

Explanation.For the purposes of this section, the
expression civil construction includes

(a) the construction or repair of any building, bridge, dam
or other structure or of any canal or road;

(b) the execution of any works contract.

CASH SALE OF Rs. 10000/- WITH TAX. THEN WHAT SHOULD BE THE ENTRY BEHIND THIS IN BOTH SIDE SALES AND TAXATION.

2132

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Should we give C form with Freight, Insurance, P&F after CST?

3843

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The value of the tax invoice is lesser than the value on the state permit. Is this acceptable.

3401

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Rules for filling Income Tax return for an Individual ?

1952

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What is DSCR and how to calculate the same.

4158

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AS PER VAT AUDIT WE HAVE REFUND OF RS.25000/- ON PURCHASE OF FIXED ASSETS WHICH WE DID NOT CLAIM LAST YEAR, NOW WHAT ENTRY SHOULD WE PASS IN BOOK. ITS URGENT

2128

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Dear Experts, I need your help in deriving a formula for calculating three taxes with a combination of cumulative and inclusive tax. Here are the examples with expected result. Please let me know the formula on how to get the given result. Example1: Total Product Value (V) = 1000 (with inclusive of all 3 taxes and below mentioned cumulative combinations) Tax1 rate is 10% and Tax1 is inclusive. Tax2 rate is 10% with Tax2 is inclusive and cumulative of Tax1 Tax3 rate is 10% with Tax3 is inclusive and there is no cumulative of Tax1, Tax2 Expected Results are: Tax1=76.34 Tax2=83.97 Tax3=76.34 Let me know formula to derive above values? Example2: Total Product Value (V) = 1000 (with inclusive of all 3 taxes and below mentioned cumulative combinations) Tax1 rate is 10% and Tax1 is inclusive. Tax2 rate is 10% with Tax2 is inclusive and cumulative of Tax1 Tax3 rate is 10% with Tax3 is inclusive and cumulative of Tax2 Expected Results are: Tax1=75.70 Tax2=83.27 Tax3=84.03 Please let me know formula to derive above values? Thanks in advance.

1711

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While depositing cash at any bank above then Rs 50K, we need to provide PAN Card or we have to fill form 60, but tell me why a person needs to sign FORM 60 if he is paying installments of >50K of Loan availed by him/her earlier? As if he is repaying Loan, not depositing in his A/c?

3590

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what will be my tax if i suddenly got 800000 to 1000000 in my bank by chq from sale of an old house?

3813

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assessee is a developer. menthod of accounting- mercantile. he sold a flat to party , registration has been done in financial year 2012-13. but he has taken the sale next financial year on the ground that one cheque has been credited in the next financial year. can the assessee's claim can be considered for taxation purpose

1589

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what is the difference between vat return and return for remittance on value added tax.

2720

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what is central excise tax

2079

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Whether We can Get the Refund of Service Tax Paid Wrongly to the department.We are not suppose to pay the tax and we knew after that we can adjust that servies tax what we have collected from our client aganst services received from our suppliers.

5379

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when wct@8.75% is charged from the vendor. How much TDS has to be deducted against it??

2638

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which purchases is profitable for us a building material purchases from direct of contactor ?

1842

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