My client is a works contractor to an organisation which is developing and selling the windmill plants (turnkey basis). Can my client claim deduction u/s 80IA on the income earned through the business of works contractor.
Amit Kamerkar (Partner) (46 Points)
07 April 2010My client is a works contractor to an organisation which is developing and selling the windmill plants (turnkey basis). Can my client claim deduction u/s 80IA on the income earned through the business of works contractor.
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 07 April 2010
THROUGH the finance budget -2009, an explanation is added to Sec.80IA which says that if the elegible business as mentioned in sec80IA(4) is carried out by a contractor as a works contract, the said deduction shall not be available to the works contractor.
The deductions is actually given to cover up the investment risk and not the contract risk. !!!!!!
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