Can a person running private tuition class file ITR 4S? Can a Labour Contractor File ITR 4S? My question is that Is ITR 4S specifically not used by persons involved in service sector ?
Sumit Rajput (Article) (115 Points)
10 August 2015Can a person running private tuition class file ITR 4S? Can a Labour Contractor File ITR 4S? My question is that Is ITR 4S specifically not used by persons involved in service sector ?
Rashi Bajaj
(CA)
(752 Points)
Replied 10 August 2015
ITR 4S cannot be used only by professsionals. It does not necessarily exclude all service providers. Works contract service provider can file 4S if otherwise qualified.
About private tuition fees, I am not sure if you should account it as business income or other sources...
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 10 August 2015
Coming to private tuition class services, if such services are provided by the individual assessee, then such income will be considered as professional income in which case ITR4S is not applicable. But if several tuitors have been hired by the assessee to run classes, it might be considered as business, in which case ITR4S might be applicable. However, I would await views of others.
Sumit Rajput
(Article)
(115 Points)
Replied 10 August 2015
But if several tutors are hired by an assessee for teching & assessee himself also teach students in the tuition class, then what ? whether he can file ITR 4S or not ?
And one more thing I just want to clear is : Is it true that all the service providers can not use ITR 4S? only a person doing business can file ITR 4S ?
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 10 August 2015
Whether a particular activity can be classified as `business' or `profession' will depend on the facts and circumstances of each case. The expression "profession" involves the idea of an occupation requiring purely intellectual skill or manual skill controlled by the intellectual skill of the operator, as distinguished from an operation which is substantially the production or sale or arrangement for the production or sale, of commodities. - CIT Vs. Manmohan Das (Deceased) [1966] 59 ITR 699 (SC), CIT v. Ram Kripal Tripathi [1980] 125 ITR 408 (All).
By reading the above definition, this seems to be profession only and hence ITR4S cannot be used. ITR4S can be used for business purpose only. If professional income, then ITR4 needs to be used.
Sumit Rajput
(Article)
(115 Points)
Replied 10 August 2015
One more thing If a civil contractor gets his contract done by his labourers, then is it a business or a profession ?
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 10 August 2015
I think that is business. https://incometaxmanagement.com/Pages/Gross-Total-Income/Business-Profession/Which-Professional-Businessmen-have-to-maintain-Bookof-%20Accounts.H T M L
Mitul Patel
(Tax consultants & Audit Assistant )
(35 Points)
Replied 11 August 2015