44ab audit

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JAYAKUMAR.M.G

JAYAKUMAR.M.G (Querist)
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05 September 2012 Dear Sir
One of my clients have a turn over of Rs 98 Lakhs during 2011-12 and he received Rs 30 lakhs from one Govt Departments towards contract amount without deduction of TDS. My question is whether heis eligible for presumptive basis of taxation for contract receipts and for trading he is filing auditing u/s 44AB.

Kindly clarify
Thanks& Rgds

Soumitra Basu

Soumitra Basu (Expert)
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06 September 2012 No. Turnover means entire turnover of the assessee.

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JAYAKUMAR.M.G

JAYAKUMAR.M.G (Querist)
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07 September 2012 Dear Sir
pls note that the contract is the supply of animal feeds like green podder, palm leaves , etc to a Zoo. All the purchases are from unregistered dealers.All the payments for these purchases are cash .Under these circumstances kindly advice and whether the cashpayments attracts disallowance u/s 40
RGDS

Soumitra Basu

Soumitra Basu (Expert)
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08 September 2012 It is not a contract. It is purely sale.
If the goods are agricultural product and purchased directly from grower and/or producer then section 40A (3) has no application.

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