Preparation of final accounts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2015 sir/madam,
if a person is engaged in two business one in fabrication works and second in scrap business.Fabrication business is reg for vat ,scrap businesss is not registered.
Please inform me (1) whether income or expenditure is prepared for such types business or manufacturing and P&L account is prepared?
(2) Scrap business income is shown in cr side of manufacturing a/c or it is credited to p&l a/c.
(3)whether such types of business fall under civil contractors while filing incometax retns?
(4)whether scrap business can be shown along with fabrication business to arrive at gross profit? Plz inform me.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

13 July 2015 1 If you are not paying any central excise prepare P&L account.
2 Credit it to P&L.
3 No.
4 It is left to your option, it can be shown provided the entire scrap is generated out of fabrication.

Message likes : 1 times

CMA Gul S

CMA Gul S (Expert)
Follow

13 July 2015 PL Account is mandatory
credit will go to P/L ac
no Civil contract

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2015 Can you please inform me under which category Fabrication contractors and scrap business comes ,while filing incometax returns.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

14 July 2015 If your turnover of both the business is less than 1 crore you can opt for Presumptive taxation u/s 44AD.
Both will be treated as business income.

Message likes : 1 times

CMA Gul S

CMA Gul S (Expert)
Follow

14 July 2015 These are to be treated as business income

Message likes : 1 times