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%
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- FORM 26A APPLICABILITY
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
