subcontactors profit

[ishwar hegde]

If main contractors commission is 3% , can we claim this out of 8% profit?

[Vivek Harsh]

 

kindly elaborate your quiery

[ishwar hegde]

sir,

we have shown 4.8% net profit in a subcontractors return of income and the case is sellected for scrutiny.

the Ao is asking us to agree for 8% N/p because he is not satisfied with the books and vouchers/ bills maintained.

our cntention is that we are the sub contractors and have to pay 3% commission to the main contractor.

therefore is our contention  justified? are there any cases for refferances? Plz answer.

AI Summary

Subcontractor commission: can contractual commission be deducted from assessed profit when the tax officer disputes books? The subcontractor filed a return showing a lower net profit while the assessing officer, dissatisfied with books and vouchers, proposes a higher standard net profit; the subcontractor contends it pays a contractual commission to the main contractor and asks whether that commission may be recognized to reduce the officer's proposed assessed profit.