Sec.44ad w.r.t. educational institutions
This query is : Resolved
PLV SUBRAHMANYAM
(Querist)
17 November 2011
Sir
A Partnership Firm running an Educational Institute shall have to opt for Sec.44AD,
if it is having taxable income and does not
want to get the accounts Audited;
If so, whether Educational Activity comes under Business or Profession; Then, the firm
has to pay tax on 8% Net Profit. pl. clarify.
ramanandam babu
gudivada
A Partnership Firm running an Educational Institute shall have to opt for Sec.44AD,
if it is having taxable income and does not
want to get the accounts Audited;
If so, whether Educational Activity comes under Business or Profession; Then, the firm
has to pay tax on 8% Net Profit. pl. clarify.
ramanandam babu
gudivada
17 November 2011
Sec. 44AD is for only Business. Education institute comes under the perview of profession.
Message likes :
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PLV SUBRAHMANYAM
(Querist)
17 November 2011
If an educational institution is run by professionally qualified teachers, we can say it as Profession; If it is run by a person hiring some Professional teachers and run on commercial lines, it will be treated as business; hence, Sec.44AD may applicable in such situation is to be clarified.
PLV SUBRAHMANYAM
(Querist)
17 November 2011
This query is open; pl clarify;
ramanandam babu
gudivada
ramanandam babu
gudivada
Vishal D Shah
(Expert)
19 November 2011
I agree with PLV.
19 November 2011
I would like to ask you one thing over here. Whether the person who is hiring teachers is just an agent or he only runs the educational institution?
PLV SUBRAHMANYAM
(Querist)
19 November 2011
Dear Yash Anandkumar
The person in question only runs the educational institution, but he is not qualified and hires various teachers
to teach the students
pl reply
ramanandam babu
gudivada
The person in question only runs the educational institution, but he is not qualified and hires various teachers
to teach the students
pl reply
ramanandam babu
gudivada
19 November 2011
He runs the educational institution. I assume that he is proprietor. Eventhough he is only hiring the qualified professionals, it would classified as profession only because the substance is that of providing education.
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