Methods for computing minimum tax liability
This query is : Resolved
03 December 2011
A proprietor firm is engaged in water supply system work and other construction works also. so wct is applied for a water supply work part and vat on sales bill. purchase consists os material of 5%,12.5%,cst & exempt goods also. Now please suggest the method, procedure so that minimum liability occur. also provide te format of working wit provisions if possible. will be thankfull for the help.
10 December 2011
Mr. Aman Jain,
Here there is no ...specific method to minimise the tax liability.Sales are to be charged tax at the applicable rates.In WCT exemption can be claimed on labour and establishemnt expences and the value of exempted goods included in the work.The gross profit apportioned to these exempted items also is exempt.It is always better to opt for normal method of tax payment than composite scheme, which is always higher.For normal tax payment system you have to maintain proper accounts in detail....MJK
Here there is no ...specific method to minimise the tax liability.Sales are to be charged tax at the applicable rates.In WCT exemption can be claimed on labour and establishemnt expences and the value of exempted goods included in the work.The gross profit apportioned to these exempted items also is exempt.It is always better to opt for normal method of tax payment than composite scheme, which is always higher.For normal tax payment system you have to maintain proper accounts in detail....MJK
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
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Price inclusive or exclusive of GST while made entry in P& L Account
- Dep. as per companies act
- Minimum tax payable to file Updated return
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Applicability of GST on Salary Reimbursement Component
- UDIN ISSUE
- GST Intimation due to Government took possession of Business Premises under PPE Act
- Tax rate change regarding
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
