Income tax for consultant

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Harish (Querist)
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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?

Thanks,
Harish

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 November 2018 Income will be 18 lacs for 44ADA. Yes TDS can be claimed.

RAJA P M

RAJA P M (Expert)
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19 November 2018 As per my view., If You will file u/s 44ada then You ll be show the receipt/turn over including Tax value as presumptive taxation...

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Harish

Harish (Querist)
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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?

Thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 November 2018 then why are you charging GST on reimbursements?

Harish

Harish (Querist)
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19 November 2018 Sir, this is a requirement from the company to charge GST on reimbursement.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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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.