Urgent

This query is : Resolved

Vivek (Querist)
Follow

20 September 2012 Dear Sir,
There is a partnership firm engaged in civil construction.
In form 26AS of the firm there is only a single payment of 21 lacs and TDS thereon is Rs. 48000/- is being reflected. Whereas as on the other hand firm's bank a/c stating following particulars of deposits pertaining to FY 2011-12 -

(A)Payment from a govt department for civil construction of Rs. 21 lacs. Which is reflecting also in form 26AS, as I mentioned above.

(B) Payment received in cash which is from a another contractor, of Rs. 8 lacs, for working as a sub-contractor under that contractor deposited by partners in firm's bank a/c. And that contractor did not deduct any tds on said amount nor it is being reflected in form 26AS.

(C) Payment received through rtgs from same contractor mentioned in clause (B). and again that contractor did not deduct any tds.

(C) Deposit of Rs. 15 lacs through RTGS, by a relative of a partner, and later on that partner has withdrawed said amount for the purchase of his own residencial land.

Now please advise me, to calculate net profit @8% u/s 44ad what would be turn over of the firm from aforesaid deposits.

And practically, how is the idea if firm calculates only on 21 lacs as it is reflecting in form 26AS.

Please clarify soon.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

20 September 2012 Calculating on 21 lakh is not "true as well as fair". The 8% or above should be calsulated on contractual receipts and not the receipts in Bank Account.

Vivek

Vivek (Querist)
Follow

20 September 2012 From above a b c d points, which are eligible for sec. 44AD in your opinion

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

20 September 2012 you need to decide whether you are folowing receipt basis or mercantile, then will come A,B,C,D. B is definitely under 44AD. C is also 44AD. D is loan and therefore out of 44AD. A will depend upon the method of accounting.

Vivek

Vivek (Querist)
Follow

20 September 2012 Actually, D point's amount was transfered by the relative of a partner and that partner withdrawed later that amount for the purchase of his own residendial plot. Firm has no concern with this amount and that partner used firm a/c just for his own mean.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

20 September 2012 So definnitely D is not contractual receipt. Is it?

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

RAJ SANKLECHA

Pushkar Nagda

sachingurav

R.Prashanth

SUBASH CHANDRA BOSE

Subscribe Now

Urgent

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA