Dear Sir/Madame,
What constitute turnover for 44AB in case of contract receipts, as the assessee is taking contract on own name and sub contracting directly to other contractors, in such case the assessee is paying the contract amount to sub contractors in full after deducting certain percentage of fees as commission for own as incentive fees receipts, on remaining payable amount the assessee deducts the TDS at 1% as applicable u/s 194C. And my queries are as following.
1] Is it necessary to show as turnover in assessee's book as the assessee is directly sub contracting by taking certain amount as fixed for thier commission from sub contractors?
2] What is the 44AB implication on both assessee and sub contractors?
3] Assessee is acting like consignment agent in this case? and taking commission from sub contractors while paying the contract amount?
I kindly urge to resolve the query at earliest.
Thanks one and all
CAclubindia
