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Labour contract

SURENDRA (B.Com) (50 Points)

22 August 2018

DEAR SIR

I HAVE LABOUR SUPPLIER LICENCE AND I RECD MONEY IN MY ACCOUNT ON BEHALF OF ADVANCE PAYMENT TO LABOUR ..BUT ACTUALY I EARN COMMISSION ONLY . ON MY ACCOUNT ADVANCE PAYMENT IS ABOUT 40 LACS BUT EARNING COMMISSION IS 3 LACS ONLY ... CAN I SHOW RECEIPTS BY PROFESIONALS UNDER 44ADA TURNOVER IS 40LACS OR 3 LACS ?

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3 Replies

CA Bhavik Soni (867 Points)
Replied 22 August 2018

first of all you are not eligible for 44ADA
And secondly whole receipts will be considered as your income but you can claim expenses too accordingly

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SURENDRA (B.Com) (50 Points)
Replied 22 August 2018

BUT THIS IS FALLS UNDER THIS CATEGORY OR NOT

PROFESSION -Labour recruitment and provision of personnel -16014

Akhil Suresh (81 Points)
Replied 23 August 2018

If the man power your supply render professional services, then the income your earn is professional income. Since the man power your supply are not professionals and they do not render professional services you are earning business income.

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