28 October 2014
If a person will contract in future with a company for supply of atleast 50 trucks for transporting of coal from one place to another. The contract period will be 1 year. The fare of truck will be paid on the basis of per tonne. The payment of 2.5 crore are paid in every end of month by the company in his bank account. The person recieves such payment & after deducting his 25 lakhs commission, the rest 2.25 crore of payment are paid to the truck owners every month. The person donot maintains any books of account. Now the question is that whether the payment recieved are liable to tax and what are the various taxes levied. will he take this huge amount in one bank account? If the taxes are levied then how to minimize that tax. If the person recieves such huge payment in bank account then, what are the conseqences will have to face. Kindly suggest the best.
01 November 2014
Dear Sushant, first of all when amount received more than 20lacs during the previous year he is liable to maintain book of A/c. secondly he will be liable to pay income tax, for minimize of tax you can claim expenses for the commission income earned and you can also invest in chapter VI A for deduction for minimize of tax
CAclubindia
