Tax treatment for Builders & Devlopers co.
This query is : Resolved
Guest
Guest
(Querist)
29 October 2010
is net profit of builder less than 20% of the net sale proceed of company?
Aditya Maheshwari
(Expert)
29 October 2010
depends upon the porject to project. Some are more profitable while others not. It also depends upon the nature of development.
If there is redevelopment or Slum rehabilitation then profit would be less as compared to fresh development.
If there is redevelopment or Slum rehabilitation then profit would be less as compared to fresh development.
Guest
Guest
(Querist)
29 October 2010
Aditya sir,pls mention the minimum net profit rate as per income tax Act.
Aditya Maheshwari
(Expert)
29 October 2010
The income tax act does not specify the any minimum net profit rate. However it should be atleast 8% as it was the rate applicable to contractors. In my view it should be atleast 12 - 15%.
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