sec 44AD applicabiliy

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2011 RESPECTED EXPERTS.....
ONE OF THE PERSON IS DEALING WITH THE MOBILE COMPANIES CARDS AND OTHER ANCILIARY PRODUCTS
NOW,COMPANY PAID HIM COMMISSION AFTER DEDUCTING TDS,AND THAT COMMISSION AMOUNT IS APPROXIMATELY 40 LACS,
THUS ON ONE SIDE HE IS AS IF RETAIL TRADER OF MOBILE PRODUCTS AND ON THE OTHER SIDE COMPANY PAID HIM COMMISSION,
THUS WHETHER SUCH PERSON CAN AVAIL THE BENEFIT OF SEC 44AD?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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27 June 2011 First decide his turnover or gross receipts.

Gross Receipts are 40.00 lacs, decide Sales of mobiles and its products.

In case the total exceeds 60.00 lacs , it is compulsory to get accounts audited as per Section 44AB (a) .

Please also check whether he has passed on commission to his retailers and discharged his TDS liablity.

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