Clarification on service type under it

Hi all, 

My friend is involved in providing services to an Organisation. He supplies manpower to conduct tests and recruitment activities for students. He gets payment from the organisation for the per day charge of the manpower deployed + for other expenses like travel, food, accommodation etc. 

The organisation deducts 10% TDS.

How to maintain his books of accounts? Is he liable to pay tax for the entire amount that he receives? Because a major portion of it goes to such payments mentioned above. 

Please help.

Replies (3)

No need to maintain books of accounts, declare the profits u/s. 44AD....... ie. 8% or more of gross receipts.... provided the receipt does not exceed  2 cr.

Thank you so much Sir. Understood. 

Great help!

One more doubt. His gross receipt of last year had been 7 lacs. The GST ceiling of 20 Lacs turnover is applicable right?

Only when his turnover is beyond 20 lacs should he get registered under GST?

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