How to compute Income from JCB hiring?

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

Can it be calculate on presumptive income basis?


Kindly reply soon.......

Replies (7)

where is your confusion..

please give some details...

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

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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.

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

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
 

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.

JCB is not a vehicle carrying goods or passengers, but an excavation vehicle, hence section 44AE not applicable. Check attachment for further queries


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