13 September 2010
Assesse is a trader & has a turnover of Rs. around 50-55 lacs. Apart from this he has 2 vehicles which he is hiring on rent, in such a case how to charge depreciation in respect of that asset & is sec. 44 E has to be considered...?
13 September 2010
the assessee being subject to tax audit and having income from 2 sources one from trading activity and another from incidental business of carrying out hiring activity (both falls under business income)i suggest let the income from both the sources be shown in the P & L account.claim depreciation on the vehicles owned.
14 September 2010
agreed with CA.Mini, It is better to shown as incidential business and claim deprecaiton and other expenses, by which he can claim maximum deduction of expenses.
You can opt for the suggestions given by CA Mini, CA Bijender. But the problem may arise when there will be indirect taxation provisions which can increase the complications. As the trader is having good turnover then VAT, CST etc, as the case may be, will be applicable.
As the amount is very small, according to me it is better to consider it in Section 44E.
16 September 2010
IN case of incidential business, there is no problem of VAT , CST , in case of hiring , you have to register yourself in Service tax only if you exceed the exemption limit of 10 Lac.
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