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How to compute Income from JCB hiring?

CA Jignesh Patel (Charterest Accountant in Practice) (53 Points)

29 May 2011

Can anybody tell me how to calculate income from JCB hiring charges?

Can it be calculate on presumptive income basis?

Kindly reply soon.......

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7 Replies

Dheeraj (Learner) (1100 Points)
Replied 29 May 2011

where is your confusion..

please give some details...

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 29 May 2011

IN MY OPINION PROPER BOOKS SHOULD BE PREPARED FOR JCB RECEIPT AND PROFIT SHOULD BE ACCORDINGLY

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U S Sharma (glidor@gmail.com) (21056 Points)
Replied 29 May 2011

as hiring of plant and machinery invites provisions of TDS, service tax and to some places works contract, so without proper accounts on hiring charges, compliance is not possible.

anil kumar (Study) (52 Points)
Replied 29 May 2011

JCB IS CONSIDERED AS EARTH MOVER.IT'S EXCLUDED FROM PRESUMPTIVE TAXATION.

Jaykumar Zankarlal Pokharna (Proprietor) (29 Points)
Replied 29 May 2011

If you are working as civil contractor and the your JCB used for excavation, laveling of land i.e. site development purpose the section 44AD (Prisumptive Income @ 8% on Gross Receipts) will be atracted

Tax pundit (FCA, AICWA,LL.B., DISA) (106 Points)
Replied 29 May 2011

Applicability of section 44AE to income earned from JCB

Where the presumptive provisions of section 44AE apply, the profits and gains from each goods carriage has to be computed as laid down in sub-section (2).

Prima facie, in the case of a heavy goods vehicle, the presumptive income shall be an amount equal to five thousand rupees for every month or part of a month during which the heavy goods vehicle is owned by the assessee in the previous year.

Clause (a) of the Explanation to the section says that for the purposes of this section, the expressions “goods carriage” and “heavy goods vehicle” shall have the meanings respectively assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988).

The relevant provisions of the Motor Vehicles Act, 1988 read thus:

“Sec 2(14) “goods carriage” means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods;

(16) “heavy goods vehicle” means any goods carriage the gross

vehicle weight of which, or a tractor or a road-roller the unladen weight of either of which, exceeds 12,000 kilograms;”.

It can be seen from above that a JCB used for carryingoods will be covered by the above definition.

Hence section 44AE can be applied for computing the presumptive income from a JCB.

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