Clarification on section 44ae


(Querist)
22 July 2019
Pl. Clarify Applicability Of Sec 44AE In View Of Amendment Made By Finance Act 2018 For Current F.Y. 18-19 I.E. A.Y. 2019-20.The Amended Section Uses The Words "Gross Vehicle Weight Or Unladen Weight As The Case May Be @ Rs. 1000/- Per Ton. Now, The R/C Of A Heavy Goods Vehicle(HGV) Mentions Both The Weights I.E. Gross Vehicle Weight 25 Tons And Unladen Weight 10.625 Tons Presumptive Income Till March 18 Was Rs. 7,500/-P.M. Hence If Unladen Weight Is Taken It Will Be Rs. 10625/-Per Truck P.M. But If Gross Vehicle Weight Is Taken It Will Be Rs. 25000/- Per Truck P.M. You Are Requested To Clarify Why Both The Weights Have Simaltaneously Been Mentioned In The Section, Which Weight Has To Be Considered For Computing Income U/S 44AE And Why The Word As The Case May Be Has Been Mentioned Therein. As Per New ITR Form For A.Y. 2019-20, “TONNAGE CAPACITY” Is Being Asked For The Calculation Of Income U/S 44AE. Kindly Clarify What Should Be The Tonnage Capacity In Above Case Either 10.625 Tons Or 25 Tons Or 14.375 (25 less 10.625) Tons ?


CA R SEETHARAMAN (Expert)


Click to Talk 22 July 2019
The Tonnage Capacity In Above Case 10.625 Tons unladen weight has to be considered. Your vehicle is not a heavy vehicle(less than 12MT).
The vehicles other than heavy goods vehicle will continue to be taxed as per the existing rates of Rs. 7,500 per month or part of a month for each goods carriage or the amount claimed to be actually earned by the assessee, whichever is higher.


Anurag Kalra (Querist)
22 July 2019
But as per Motor Vehicle Act
(15) “gross vehicle weight” means in respect of any vehicle the total weight of the vehicle and load certified and registered by the registering authority as permissible for that vehicle;
(16) “heavy goods vehicle” means any goods carriage the gross vehicle weight of which, or a tractor or a road-roller the unladen weight of either of which, exceeds 12,000 kilograms;

So how you can say that in my question the vehicle is not a heavy vehicle (less than 12MT)

CA R SEETHARAMAN (Expert)


Click to Talk 22 July 2019
Unladen Weight is 10.625 so it' less than 12 MT not a heavy vehicle. Gross weight referred in the section also meant empty vehicle weight only


Anurag Kalra (Querist)
22 July 2019
For heavy goods vehicle.....we have to compare with Unladen Wt or Laden/GV Wt?

CA R SEETHARAMAN (Expert)


Click to Talk 22 July 2019
For heavy goods vehicle.....we have to compare with Unladen Wt


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