Section 194h

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Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2012 Dear expert,
One of my client runs a recruitment agency, and his receipts are being subject to tds u /s 194H. In FY 2011-12, their gross receipts are around 6 lacs and tds deducted thereon is around 60000/-
Here I would like to know that whether recruitment agency comes in the category of business?
And can he opt section 44AD by declaring Net profit @8% on 6 lacs.
Please advise me.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 May 2012 TDS has been deducted u/s 194H (commission or brokerage).

Section 44AD has been retrospectively amended to provide that Section 44AD DOES NOT apply to commission or brokerage income.

Accordingly, the recruitement agency CANNOT avail benefit u/s 44AD.

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2012 Can you please provide me no./date of respected circular/notification.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 May 2012 The amendment has been brought in by Finance Act 2012.

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2012 So in this case, I should file ITR 4 by showing all the expences incurred to earn commission.
Ans one more thing, whether in the above case assessee is liable to maintain accounts or not.

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2012 So in this case, I should file ITR 4 by showing all the expences incurred to earn commission.
Ans one more thing, whether in the above case assessee is liable to maintain accounts or not.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 May 2012 1. The assessee will have to maintain books of accounts.

2. ITR 4 will be filed showing income and expenses.

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