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Labour contract

Tax queries 145 views 3 replies

SURENDRA

B.Com

50 Points Joined December 2014

DEAR SIR

I HAVE LABOUR SUPPLIER LICENCE AND I RECD MONEY IN MY ACCOUNT ON BEHALF OF ADVANCE PAYMENT TO LABOUR ..BUT ACTUALY I EARN COMMISSION ONLY . ON MY ACCOUNT ADVANCE PAYMENT IS ABOUT 40 LACS BUT EARNING COMMISSION IS 3 LACS ONLY ... CAN I SHOW RECEIPTS BY PROFESIONALS UNDER 44ADA TURNOVER IS 40LACS OR 3 LACS ?

Replies (3)

CA Bhavik Soni

867 Points Joined December 2015

first of all you are not eligible for 44ADA
And secondly whole receipts will be considered as your income but you can claim expenses too accordingly

SURENDRA

B.Com

50 Points Joined December 2014

BUT THIS IS FALLS UNDER THIS CATEGORY OR NOT

PROFESSION -Labour recruitment and provision of personnel -16014

Akhil Suresh

81 Points Joined August 2018

If the man power your supply render professional services, then the income your earn is professional income. Since the man power your supply are not professionals and they do not render professional services you are earning business income.