44 ad presumptive income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2015 Dear Experts,

One of my Clients filed his ITR in form 4S for AY 2014-15. He is currently into trading of Aluminuim & does Job work of chrome plating on it.
His turnover including both was 50 lacs & he paid tax considering 8% profits.
My question is can we file Return taking presumptive income in case of job work also??

He has received notice via e saahayta taking a difference in turnover as per service tax & Income tax.

Please help.

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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03 November 2015 You first need to ensure/check two conditions (a) whether he is eligible assessee, and (b) whether the business carried out is eligible business.
Eligible assessee means assessee who is resident in India and who is individual, HUF or partnership firm.
Eligible business means any business except the following:

A person carrying on profession referred to section 44A(1).
A person earning commission or agency income.
A person carrying on business of plying, hiring or leasing goods.
Total turnover or gross receipt in the previous year should not exceed Rs. 1 Crore. ( For A.Y. 2015-16) ( audit party).

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2015 Yess all the above conditions are fulfilled.
MY question is related to whether he can take presumptive income @8% on the combined turnover of sales and job work.???
It is below 1 Cr.

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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03 November 2015 Per me-YES; both of them do qualify as Trading+Service subject to conditions referred above are fulfilled.

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