conflicts between 44AA AND 44AD/E/F
This query is : Resolved
ATIT D SHAH
(Querist)
31 October 2008
IN 44AA ITS MENTIONED THAT BOOKS OF ACCOUNTS ARE REQUIRED TO BE MENTIONED FOR NON PROFESSINALS IF SALES EXCEEDS 1000000/- IN ANY OF 3 PRECEEDING FINANCIAL YEARS.
IN 44AF(RETAIL TRADE) IF WE PRESUME TAX AT RATE OF 5% THAN WE ARE NOT REQUIRED TO MAINTAIN BOOKS OF ACCOUNTS
NOW SUPPOSE Mr. X IS ENGAGED IN BUSINESS OF RETAIL TRADE AND HAS TURNOVER OF 3000000/- AND AS PER PROVISIONS OF 44AF HE PRESUMES HIS PROFIT AT Rs.150000/-(3000000*5%). SO HE IS NOT REQUIRED TO MAINTAIN BOOKS OF ACCOUNTS U/S 44AF BUT AS PER PROVISIONS OF 44AA HE IS REQUIRED T MAINTAIN AS TURNOVER EXCEEDS Rs.1000000/- !
HERE BOTH PROVISIONS ARE CONFLCTING WHAT SHOULD I DO ?
IN 44AF(RETAIL TRADE) IF WE PRESUME TAX AT RATE OF 5% THAN WE ARE NOT REQUIRED TO MAINTAIN BOOKS OF ACCOUNTS
NOW SUPPOSE Mr. X IS ENGAGED IN BUSINESS OF RETAIL TRADE AND HAS TURNOVER OF 3000000/- AND AS PER PROVISIONS OF 44AF HE PRESUMES HIS PROFIT AT Rs.150000/-(3000000*5%). SO HE IS NOT REQUIRED TO MAINTAIN BOOKS OF ACCOUNTS U/S 44AF BUT AS PER PROVISIONS OF 44AA HE IS REQUIRED T MAINTAIN AS TURNOVER EXCEEDS Rs.1000000/- !
HERE BOTH PROVISIONS ARE CONFLCTING WHAT SHOULD I DO ?
31 October 2008
As per section 44AF(4),in the given situation,provisions of section 44AA is not applicable. Therefore question of conflict does not arise in my opinion.
CA Nitin Wadhwani
(Expert)
31 October 2008
Yes. Mr Warrier is Right.
Sec.44AD/E/F - Tax on Presumptive Basis Are Exceptions to Sec.44AA.
Sec.44AD/E/F - Tax on Presumptive Basis Are Exceptions to Sec.44AA.
31 October 2008
44AD/E/F prevails on 44AA
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