Builder is covered under 44ad
This query is : Resolved
30 March 2014
Dear Sir,
I have following query;
1) Whether Builder is covered under section 44AD, since he does not have any sale during the current FY
2) While calculating profit of Builder (Partnership firm) do we need to add back the tax/ Income chargeable to tax calculated by applying section 44AD and then calculate partners profit.
please reply.
Thank you in Advance.
Regards,
CA Rohan.
I have following query;
1) Whether Builder is covered under section 44AD, since he does not have any sale during the current FY
2) While calculating profit of Builder (Partnership firm) do we need to add back the tax/ Income chargeable to tax calculated by applying section 44AD and then calculate partners profit.
please reply.
Thank you in Advance.
Regards,
CA Rohan.
30 March 2014
In case of builder the income is to be calculated on the basis of percentage of work completed. Say you have spent 2500000 in first year and no sales have been booked then you have to add 1% to the cost as profit if the work completed is 1% and the profit taxable will be 25,000/- being 1%
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