It presumptive method

An original transport contractor providing trucks to Govt organisation and full amount of agreed contract rate transferring to the transport contractor’s bank account. But, the transport contractor hiring the trucks from truck owners, transport agencies  & transport brokers and 95 % of the cash directly paying to the above parties .Only 5 % of the amount is actually crediting to his account  as business income for  whole operation of the contract and  all the balance amount paying to the supplier by cash for their taxable expenses( Diesel ,oil , vehicle maintenance etc )  . How the original transport contractor opt which presumptive method for filing IT returns like 44 AE, 44 ADA ,44 AD

Pease clarify

Replies (2)
Originally posted by : Safari Tours N Travels
An original transport contractor providing trucks to Govt organisation and full amount of agreed contract rate transferring to the transport contractor’s bank account. But, the transport contractor hiring the trucks from truck owners, transport agencies  & transport brokers and 95 % of the cash directly paying to the above parties .Only 5 % of the amount is actually crediting to his account  as business income for  whole operation of the contract and  all the balance amount paying to the supplier by cash for their taxable expenses( Diesel ,oil , vehicle maintenance etc )  . How the original transport contractor opt which presumptive method for filing IT returns like 44 AE, 44 ADA ,44 AD

Pease clarify


Your is a case which may not fall under any of the presumptive taxation schemes  as :

* 44AE : Not applicable as you can not controll the number of trucks you owns/hires as at any moment you may be in need of less then 10 truck and just next following day you may need to have more then 10 trucks..so that itself make yours an uneligible case for 44AE .

* 44AD : You may consider all of your this setup as bussiness activity BUT 44AD specifcally bars bussiness activity related to Leasing/Hiring of vehicles so 44AD again is not available for your case ..Moreover other factor which you already stated regarding your profit margin of 5% itself requires you to maintain books/accounts as per 44AA and get them audited under 44AB ...so no 44AD for this case ..

*44ADA : N/A.

Is there any other method for filing ITR ?

Normally transporters are getting vely low margin ie differenec between hiring and lending amount. so it is obviously below 5 % and CA audit is very difficult because all expenses are through direct cash payment and no vouchers are prepared by truck drivers.

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