In budget, scope of presumptive taxation has been extended to small businesses with a turnover upto Rs 40 lakhs. My question is "whether turnover includes sales only or job work income can also be included in turnover?" One of my client is having annual job work income of Rs 8 lakhs only. Can he opt for presumptive taxation?
3 Replies
ishant bansal
(Business)
(24 Points)
Replied 08 July 2009
well my friend ..beneficial presumptive taxation is only for business not for professional...........
now u cud evalate it accordingly...............
Govind Inani
(Business)
(203 Points)
Replied 09 July 2009
| Originally posted by :ishant bansal | ||
| " | Yes Dear, I agree with you. But job work is not a profession. It comes under the umbrella of business and normally job work business has got N.P.ratio much higher than 8%. In my case also the client is having 20% net profit ratio. Then opting for 8% will be very much beneficial to him and not for I T department. |
" |
ishant bansal
(Business)
(24 Points)
Replied 09 July 2009
well buddy the rule is u dont need to maintain buks of account if u fall under the umbrella and show the income as 8 % of gross receipts adn taxed at 30 %...............
if u feel u r liable fr tax less than what it comes by the aforesaid criteria than u better go for for proper maintenance of buks of accounts...........
so if ur client falls in the umbrella dan he need not maintain buks of accounts in order to get benefits of presumptive taxation............
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