Regarding tax applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2016 ONE PERSON WHO ARE MAKING BODYS FOR TRUCKS. PURCHASE IRON FROM MARKET WITHOUT BILLS AND MAKE BODIES WITH LABOUR ON IT. HE RECEIVED UP TO RS. 25 LAC IN BANKS LAST F.Y, HAVE NO OTHER RECORDS , WANT TO KNOW IF HE REGISTERED HIMSELF AS A PROPRIETOR,, THAN HOW TO DO THAT, WHAT TYPE OF TAX APPLICABLE ON HIM, IS HE HAVE TO PAY TAX ON HIS LAST FY INCOME.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 May 2016 No service tax applicable on it being manufacturing activity.
Work out the profit at 8% on gross receipts u/s 44AD for last FY and pay income tax if the profit crossed 2,50 lacs.

Rupesh Jain

Rupesh Jain (Expert)
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03 May 2016 apply PAN for filing income tax. you can file return u/s 44ad.
if he want then he can apply for sale tax number then he take bill and take VAt input and make billing and set the output vat with input vat.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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04 May 2016 Experts kindly consider if any VAT is payable. Is he registered under VAT? As per me he must get himself registered under VAT and pay VAT. As he does not have the Bills so he shall not be allowed to get the adjustment of VAT if any paid.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 May 2016 Yes works contract VAT may be applicable under composition scheme take care of it as advised by the expert.

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