while considering gross receipts for aplicability of 44AD, as per my knowledge, we will not include Value of materials supplied by customer to compute 40 lakhs gross receipts.
here, my question is whether the same logic shall be applied for computing 8% of gross receipts?? i.e. whether we have to include the value of materials supplied by customer for calculating 8% of gross receipts?
Example: turnover of X is 36,00,000; value of materials supplied by customer is 6,00,000. Here in this case whether 8% will be calculated only on 36 lakhs or it should be calculated on total 42 lacs??
Example2: turnover of X is 24 lacs and value of materials supplied by customer is 12 lacs. here in this case whether 8% will be calculated on 36 lacs or only on 24 lacs??
Thanks
Prasanth Kuralla
CAclubindia
