Expenses distribution raito

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2012 Dear Experts Please Tell Me That What % Of Expenses are allowable under I.Tax Act 1961

If We Have a manufacturing Unit and Sale Amount Rs 35,00,000 & Purchase Amt Rs.32,00,000/ Then What amount of expenses are allowable under I Tax Act.1961
For Example
If We have sale of Rs 1,00,000 Then Freight Charges Up to Rs8500/-(8% of Sale Amount Are allowable)

1 Freight
2 Labour Charges
3 Business Promotion
4 Vehicle Running Expenses
5 Staff & Labour welfare
6 Travelling Expensess
7 Postage & telegrams

Pls Reply Me
Emal ID -nk96093@gmail.com

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
Follow

07 July 2012 Dear Friend, There is no system of % allowance of expenses in Income Tax Act, 1961. All genuin expenses are allowed in the act.

CA Prashant Gupta

CA Prashant Gupta (Expert)
Follow

07 July 2012 Whatever actual expenses that you can prove will be allowable expenses.

Upto limit of tax audit i.e. 60 lacs for AY12-13 you have to declare profit more than 8%. otherwise you have to conduct audit.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now