08 April 2015
I have a client whose having a carpentry Business. he has received govt order. it is his responsibility to bring material and for that he does not have a much amount in his bank a/c to pay third party for material.he is small man does not possess such amount in Bank A/c. Govt organisation insist to make payment after agreed terms. so he obtained money in cash from his relatives and Friends to pay third person.Now govt gives him amount by Cheque. and he has credited the same in his bank a/c. Now ques is that how to show the amount in Tax return. whatever payment recd from govt included material amount as well which he has obtained through his friends and relatives.he is only responsible for his labour. so what to do. how to take amount from govt Organisation so that Tax liability not generated. he is regularly filing his return.
Please suggest the way to avoid tax and bring transparency in the transaction.
10 April 2015
Ensure to fill the income part of the assessee and tax thereon only irrespective of the amount received in bank which later asked can be explained to AO
CAclubindia
