Sec 44AE

Save Share

This query is : Resolved

ABHIJIT (Querist)

05 July 2009 A PERSON IS HAVING A 2 TRUCKS AND HE IS ENGAGED IN BUSINESS OF TRANSPORTING/ SUPPLYING SAND,MUD ETC TO PEOPLE FOR CONSTRUCTION.
IS SECTION 44AE APPLICABLE? AND CAN HE TAKE RS, 3500/MONTH AS HIS INCOME?

IF 44AE NOT APPLICABLE THAN IS SEC 44AD APPLICABLE BECAUSE CIVIL CONSTRUCTION INCLUDES THE EXECUTION OF WORKS CONTRACT AND SUPPLYING OF SAND IS LIKE WORK CONTRACT ONLY ???

AND IS IT REQUIRE TO HAVE NOT MORE THAN 40 LAKHS TURNOVER INCASE OF SEC 40AE?????

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

05 July 2009 as per setion 44AE related to Special provision for computing profits and gains of business of plying, hiring or leasing goods carriages1
(1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an assessee, who owns not more than ten goods carriages 2[at any time during the previous year] and who is engaged in the business of plying, hiring or leasing such goods carriages, the income of such business chargeable to tax under the head "Profits and gains of business or profession" shall be deemed to be the aggregate of the profits and gains, from all the goods carriages owned by him in the previous year, computed in accordance with the provisions .

Hence section 44 AE shall apply in your case,
further if you don't want to be taxable as presumptive basis u/s 44AE you have to maintain books of A/cs as per section 44 AA and tax audit 44AB.

I want to add further that section 44 AD shall not be applicable in your case you are neither engage in Civil construction nor you provide contracr Labour for the same.