Hiring of bus with apsrtc

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Shaik Shair Ali (Querist)
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11 February 2012 Dear Sir/s,
One of my client is Passenger Bus Owner he has hired the Bus with APSRTC, his gross receipts are 36 lacs and TDS 20000, please explain me the calculation of Net Income.

Thanks in Advance Sir

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 February 2012 .
For arriving the Actual Net Income you have to consider all the relevant expenditures incurred which are incidental and necessary to run the bus. Expenditures like, Driver and supporting Staff Salaries, Fuel, Depreciation, Repair & Maintenance, Other Administrative expenses, Road Tax , Permit Expense, are some of these and might have been incurred by your client.
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On the basis of the above Presumptive Income can be shown U/s 44AD min@8% or higher.

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Shaik Shair Ali

Shaik Shair Ali (Querist)
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13 February 2012 Dear Sir,

Can we show the Net Income less than 8% as it is not retail business or shall we declare monthly income of Rs.5000/- p.m u/s. 44AE

Thanks in advance sir

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 February 2012 You can show lesser profit than 8% of Gross Profit, but you have to get audited the accounts. It is better to show 8% or more.
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44AE is applicable to Goods Carriages business and not for buses .

CA. RAGHAV GARG

CA. RAGHAV GARG (Expert)
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13 February 2012 Yes Mr. Shaik Ali,

you shall opt for Sec 44AD, and file your return at 8% profit.

Shaik Shair Ali

Shaik Shair Ali (Querist)
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17 February 2012 Dear Sir,

Can we filed the return u/s.44AD @ 8% under Presumptive Business without maintaining books of accounts, the total turnover is 36 lakhs, upto how many lakhs turnover we can filed return u/s.44AD and also which ITR form needed ITR-4 or ITR4S Sugam

Thanks in advance sir

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 February 2012 Upto Gross Receipts /Turnover of Rs 60.00 lacs you can file the return in ITR 4S on presumptive basis.

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