Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: empanelment :: VAT RATES :: VAT Audit :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: due date for vat payment :: cpt :: Central Excise rule to resale the machines to a new company :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS
« News Headlines »
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout

Presumptive tax net may expand
January, 28th 2008
Taxi and bus fleet owners and contractors providing raw materials, electrical work and furniture in civil construction are likely to come under the presumptive income tax net from 2008-09.
An announcement in this regard is likely in the coming Budget.
Presumptive tax is a procedure for computing profits of contractors that supply labour for civil construction or are in the business of plying, hiring and leasing transport for goods.
A proposal is being considered to widen and deepen presumptive taxation to cover more activities under section 44AD and 44AE of the Income Tax Act, a finance ministry source said.
Section 44AE, for instance, covers goods carriages up to ten vehicles but excludes passenger vehicles. This provides scope for tax evasion since a large number of taxi and bus fleet operators provide transport services to hotels, tourists, government departments and corporations.
The voluntary tax compliance level is poor in this segment, an official source said.
Under this section, a heavy goods vehicle is presumed to be making a profit of at least Rs 3,500 and other goods carriages Rs 3,150 per month and are taxed accordingly.
Similarly, 44AD covers only contractors engaged in civil construction or supply of labour for civil construction, whose annual income is up to Rs 40 lakh.
Under the section, at least 8 per cent of the contractors gross receipts are considered as profit for taxation.
Officials said there is a need to widen its scope to include raw material suppliers for construction, sub-contractors providing electrical work, furniture, interior designing and office stationery.
Tax assessors have found that a large number of such assessees claim refunds for whatever they might have paid in taxes. Since there is no provision for mandatory audit of such assessees, they tend to show lower income.
Only 1 to 2 per cent of such assessees, whose returns are scrutinised, pay taxes properly, officials said. If they are included under presumptive taxation, income tax officers will be able to raise tax demands on such assessees.
Tax deducted at source may also be made mandatory for assesses who are to be brought under presumptive taxation.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions