Friends,
Is there any estimated scheme for electrical contractors exceeding 40 lakhs?
My friend is an electrical contractor executing works of " Electrical Pole erection and power transmission" exceeding 40 lakh receipts,which mainly includes
70% Electrical work
10% Civil Work &
20% labour...
How to maintain the books of accounts?
Does it come under business head..
please guide me friends..
Thanks a lot in anticipation..
If u are applying sec. 44E i.e. tax @ 8% of contract in case of Civil contract... then, while calculating limits for Tax Audit u/s 44AB turnover of contract business is to b ignored... n remaining to b added to arive at decision for tax audit or not...
eg...
35 lacs from Electrical contracts
5 lacs from Civil Contract
10 lacs from labour
then u are required to add just 35 + 10 = 45 hence tax audit is required and for civil contract income 8% of 5 lacs as taxable income....
other example.....
25 lacs from Electrical contracts
5 lacs from Civil Contract
10 lacs from labour
then u are required to add just 25 + 10 = 35 hence tax audit is not required and for civil contract income 8% of 5 lacs as taxable income....
All the 3 income are treated as business income...
in case of civil contract if ur turnover doesnot exceed 40 lacs buks of accounts not mandatory... if u opt 4 taxing income at 8%....
In other case u are required to prepare buks of account for both labour income as well as electrical contract income saperately....
I hope ur doubts are cleared....
thanx a ton Megha, u ve also removed my confusion on the same matter
Thnx Ansari.... 4 appreciating...
Dear Sir,
Whether we can file the Tax returns for the previous year say 2007.08 and get the refund if it is applicable and also want to have update on TDS deducted for catering contractor and other contractor like security, taxi hiring, consultants.
Regards,
P.Bhagawan
CAclubindia
