Point if taxation

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neehar

neehar (Querist)
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25 December 2014 in case if actors when they should recognise and point of taxation

Rupesh Jain

Rupesh Jain (Expert)
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25 December 2014 under income tax act actor come under specified business and profession
for that they maintain book of accounts and filing of return as under

Maintenance of books of accounts by Professionals: Section 44AA of Income Tax Act and rule 6F of Income Tax rules deal with the provisions regarding maintenance of books of accounts under Income tax Act. As per section 44AA(1) read with rule 6F the persons carrying on any of the profession as mentioned below are required to maintain books of accounts and other documents as may enable the assessing officer to compute his total income, if yearly gross receipts of the profession exceeded Rs 150000.

1) Legal
2)Medical
3)architectural
4)engineering
5)accountancy
6)technical consultancy
7)interior decoration
8)authorized representative
9)film artist
10)any other profession as is notified by the board

When no books of accounts are required to be maintained by professionals covered u/s 44AA(1): Proviso to Rule 6F (1) provides that if the gross receipts of a profession do not exceed Rs 150000 in any one of the three years immediately preceding the previous year or where the profession has been newly setup in the previous year, his total gross receipts in the profession for that year are not likely to exceed the said amount, then such professional need not to maintain any books of accounts as mentioned in sub rule 2 of rule 6F.

It means that if the gross receipts of a profession exceed Rs 150000 in all the three years preceding the previous year only then the books of accounts will be required to be maintained, if the gross receipt exceed the prescribed limit in the two preceding years but not in the third preceding year then there will be no need to maintain books of accounts as contemplated in sub rule 2 of rule 6F.

Maintenance of Books of accounts by other Persons covered u/s 44AA (2): In relation to any other persons engaged in any other profession or carrying on any business other than section 44AA (1), the requirement of compulsory maintenance of books of accounts applies if- either the income from business or profession exceeds Rs 120000 or the turnover or gross receipts exceed Rs 10 Lakhs in any one of the three years immediately preceding the previous year.
- See more at: http://taxguru.in/income-tax/compulsory-maintenance-of-books-of-account-under-income-tax-act-1961.html#sthash.n762A4Ou.dpuf

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 December 2014 Income of the actors may be recognized on cash basis. Advances received may be considered as advance till commencement of shooting.

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Guest

Guest (Expert)

25 December 2014 Is the question regarding Income tax or Service tax?

Saravana Perumal Aiyathurai

Saravana Perumal Aiyathurai (Expert)
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27 December 2014 In case of income tax, the actors provide man days as labour for every film, hence, until the man days are used by production crew it can't be treated as income of the particular actor. It will remain as advance until man days are used by production house.