29 March 2009
Business of civil construction [Sec. 44AD] Applicable to: All assessee engaged in the business of civil construction or supply of labour for civil construction work. Civil construction includes – • the construction or repair of buildings, dams, bridges or other structures, or of roads or canals. • the execution of any works contract (i.e. works related to electrical fittings, plumbing job, landscaping work, etc.) Conditions: Gross receipts1 from the above mentioned business does not exceed Rs.40 lakh. 1. Gross receipts are the amount received from the clients for the contract and will not include the value of material supplied by the client. Estimated income: 8% of the gross receipts. However, a taxpayer can voluntarily declare a higher income in his return by filing return u/s 44AA and 44AB.
29 March 2009
The value of material supllied by the client or any other person is not to be taken while calculating the gross profit but for the limit under 44AB value of material supllied is to be taken.
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