19 November 2018
Hi, I'm working as a consultant. I'm raising my monthly invoices with GST charges @ 18% to company. The work requires me to travel to a different location which requires me to stay in hotel. I pay the hotel bills myself and raise the expense invoice separately to company. The company asks me to submit the expense invoice also with 18% GST. Just to explain my situation with some number (these are just for example) Monthly professional fee invoice raised 100,000 + 18% GST Monthly reimbursement fee invoice raised (towards hotel stay) 50,000 + 18% GST
the company deducts 10% TDS on both my monthly professional fee as well as reimbursement fee. I want to use income tax section 44ADA where only 50% of my income would be taxable. My question is would this income be 12 Lakh (based on monthly professional fee) or 18 lakh (sum of monthly professional and reimbursement)? Would i be able to claim the refund on the TDS deducted on monthly reimbursement?
19 November 2018
Thanks you sir for your response. As I'm not charging any mark up on the reimbursement, will it still add up to my total income? In case i don't use 44ADA, would my income be 12 lakh and i can deduct all my expenses from it?
19 November 2018
well, its a bad policy as the optics of your documentation is that you are charging GST, and the company is deducting TDS. Your turnover as per GST itself is Rs 18 lakhs. 44ADA deals with gross receipts. So 18 lakhs is what you consider here.
CAclubindia
