My client has raised invoice for 1000 dollar but company pays after deducting 10 dollars to bank account. What should I report in presumptive taxation is it 1000 dollar or 990 dollars.
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Foreign professional income.
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For presumptive taxation, you must report USD 1,000 (gross invoice value) as professional receipts, not USD 990. The USD 10 difference is either a bank charge (deemed allowed under Section 44ADA) or foreign tax withheld (eligible for FTC, if applicable). Presumptive income should always be computed on gross receipts, not net bank credits.
Yeah thank you. I'm explaining she's not ready to accept. She wants to consider bank credits not the invoice value.
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