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Tax Computation?

AUDITOR VINOTHKUMAR (a) (875 Points)

08 June 2011

DEAR ALL FRIENDS,

OUR CLINET , 1 JCB AND 1 LORRY CONTRACT HIRE BASIS , HE NOT MAINTAIN BOOK OF ACCOUNTS

BUT NOW HE APPLY LOAN TO BANK,

BANK ASKED HIM LAST 3 YEARS INCOME TAX RETURNS.

BUT (HE HAVE ONLY BANK STATEMENT )

GIVEN BELOW:

RECEIPT PAYMENT

2008 -09 1112 200

2009 - 10 144748 139159

2010 -11 2771420 2722498

RECEPTS ONLY (BANK CHEQUE FROM FEW COSTOMERS)

BUT HE RECD. MORE CASH FROM COSTOMERS . ( NOT DEPOSIT TO BANK)

EXPENDITURE : ALL THERE YEARS :

2008 - 09

RENT 2700

EB 1100

STAFF SALARY 13500 + 11500 + 5000

2009 - 10

RENT 2900

EB 1300

STAFF SALARY 14000 + 11800 + 5500

2010 - 11

RENT 300

EB 1500

STAFF SALARY 15000 + 12000 + 5000

LOAN AMT. 15,00,000/-

PLS. TAX COMPUTATION CALCULATION URGENT?

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13 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 08 June 2011

Originally posted by : vinoth TAX PRACTIONER

DEAR ALL FRIENDS,

OUR CLINET , 1 JCB AND 1 LORRY CONTRACT HIRE BASIS , HE NOT MAINTAIN BOOK OF ACCOUNTS

BUT NOW HE APPLY LOAN TO BANK,

BANK ASKED HIM LAST 3 YEARS INCOME TAX RETURNS.

BUT (HE HAVE ONLY BANK STATEMENT )

GIVEN BELOW:

RECEIPT PAYMENT

2008 -09 1112 200

2009 - 10 144748 139159

2010 -11 2771420 2722498

( check service tax returns, for exact amount of turnover for last years)

RECEPTS ONLY (BANK CHEQUE FROM FEW COSTOMERS)

BUT HE RECD. MORE CASH FROM COSTOMERS . ( NOT DEPOSIT TO BANK)

EXPENDITURE : ALL THERE YEARS :

2008 - 09

RENT 2700

EB 1100 ( what is EB?)

STAFF SALARY 13500 + 11500 + 5000 ( check Profession Tax returns for correct data)

2009 - 10

RENT 2900

EB 1300

STAFF SALARY 14000 + 11800 + 5500

2010 - 11

RENT 300 ( rent reduced in the year?)

EB 1500

STAFF SALARY 15000 + 12000 + 5000

LOAN AMT. 15,00,000/-

PLS. TAX COMPUTATION CALCULATION URGENT?

For a 15 L Loan the networth must be exceeding the loan amount and net profit must be above interest amount ...............

Capital structure is not provided, neither the fact of ownership and value of JCB and Lorry is provided.

what is purpose of loan? bank will need CMA data for processing of business loans.

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AUDITOR VINOTHKUMAR (a) (875 Points)
Replied 09 June 2011

EB 1100 ( what is EB?) electricity bill

STAFF SALARY 13500 + 11500 + 5000 ( check Profession Tax returns for correct data)

(yet not pay any tax ) to govt.

RENT 300 ( rent reduced in the year?) sorry sir, rent 3000 p.m

(above mentioned all three three years expenditures per month )

ASSET VALUE : JCB 23,00,.000/-

LORRY 12,500,000/-

what is purpose of loan? bank will need CMA data for processing of business loans.?

PURCHASE ONE MORE JCB. PLS WHAT IS CMA DATA?

AUDITOR VINOTHKUMAR (a) (875 Points)
Replied 09 June 2011

NO BILL, VOUCHER, LEDGER AND RECORD

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 10 June 2011

Credit Monetary Agregate is the elaboration for CMA data in Banking, on the basis of which generally Bank Loans are passed.

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 10 June 2011

check the turnover with service tax records and TDS portion with 26AS, mere telling that they dont maintain any record will drag them in big trouble.

funny thing that you have calculated electricity bills also on fixed rate, seems that electricity department ask you to make the bills as per your selected amount? atleast check the statuary exepenses, without making fun of profession./

non compliance of statuary liabilies will bar the financial iknstitutions to assit any monetary help.

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Well explanation sharma jii.....

AUDITOR VINOTHKUMAR (a) (875 Points)
Replied 10 June 2011

1. bank will need CMA data for processing of business loans

is it compulsory need bank will ask him cma data?

2. check the turnover with service tax records and TDS portion with 26AS

he does not pay service tax and deduct tds

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 10 June 2011

1) to offer a loan how bank will ascertain the repayment option, whether the loan amount would get repaid or not, CMA data ascertain such funds flow to establish the confirmation of availability of funds for repayment of interest and principal.

2) if he is not interested to pay any tax and statuary liabilties which are compulsary to pay and maintain, how anybody can help him?

regarding TDS, his service receipents has deducted TDS from their payment, as yourself a tax practicener, i dont expect such part of negligence in queries,

"his receipts has suffered TDS, and check whether he has been liable to deduct and pay tds or not"

aa bank receipts are 27L + so he has cash receipts also, and gross turnover if comes under audit u/s 44AB, then TDS is mandatory to be deducted from his business payments.

AUDITOR VINOTHKUMAR (a) (875 Points)
Replied 10 June 2011

thanks a lot your useful answer

Raman (Fresher) (32 Points)
Replied 10 June 2011

Women as Air hostess
Basic Salary- 4200 pm
HRA- 2000 pm
Flying Allowance- 10000 pm
Modeling Allowance-5000pm
effeciency Allowances-2000pm
what will be her tax and how can she save maximum tax
conditions are applied till now no 80G,C,D,E and no home loan