REQUIRED 44AB CLASIFICATION

This query is : Resolved

rajesh (Querist)
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25 August 2009 DEAR SIR/MADAM

1. AN INDIVIDUAL ASSESSEE DOING A COMMISSION BASED BUSINESS HE WAS RECEIVED 2,00,000 COMMISSION WHOLE OF THE YEAR I.E. EQUAL TO 2% OF 1,00,00,000 TURNOVER.
(A) HE IS COVERED UNDER SEC. 44AB OR NOT
(B) 44AB IS ONLY TURNOVER BASED OR
COMMISSION RECEIVED ON WHICH TURNOVER.

2. AN INDIVIDUAL ASSESSEE DOING TWO BUSINESS. HE MAINTAIN SEPARATE BOOKS OF ACCOUNTS FOR TWO BUSINESS. HE PREPARED P&L, CAPITAL AND BALANCE SHEET OF TWO BUSINESS SEPARATELY.
(A) HE IS DOING A TOTAL TURNOVER FOR WHOLE OF THE YEAR Rs. 30,00,000 ONE BUSINESS. AND 25,00,000 ANOTHER BUSINESS
(B) HE IS COVERED U/S. 44AB OR NOT, 44AB CLASIFIED INDIVIDUAL BUSINESS OR COMBINED. PLEASE TELL.
THANKS IN ADVANCE

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 August 2009 1A. If the individual purchases goods in his own name and later sales them to his customers then turnover of Rs 40.00 lac would be applicable. Please check the same.
1B. If only commission is received then turnover will not be taken into account for 44AB.
2. Combined Turnover of the individual is 55lacs and 44AB is applicable as turnover exceeds 40lacs. However, if any one of the businesses is a retail business then he may show profit @5% in Retail Business.
In such case turnover would be that of the other business and 44AB would not be applicable. If the 2 businesses are of the same type then tax audit is required.

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