Section 44 AD [Confused]
This query is : Open
27 February 2023
I have an entertainment website that generates revenue from display ads.
Few points:
1. The business is not registered yet.
2. Income comes in dollars from a US-based company.
3. Revenue is less than 1 crore.
4. Need help regarding 44 AD and If GST registration is needed.
My doubt:
1. Can I file 44AD without registering the business which means directly from the PAN account where income gets deposited?
2. If GST registration required?
3. Some CAs are arguing that if your profit is more than 6% then you have to show the actual profit. My profit is more than 60% but I want to show the 6% only. Is that ok?
Here I have found a case where the assessee challenged the AO officer and won the case just showing minimum profit even though the profit was much higher.
https://indiankanoon.org/doc/151903937/
https://www.caclubindia.com/forum/profit-under-section-44ad-ada-473205.asp
Here tax2win CEO says that only a minimum of 6% is required even if profit is higher.
https://tax2win.in/guide/section-44ad-44ada-44ae
Few points:
1. The business is not registered yet.
2. Income comes in dollars from a US-based company.
3. Revenue is less than 1 crore.
4. Need help regarding 44 AD and If GST registration is needed.
My doubt:
1. Can I file 44AD without registering the business which means directly from the PAN account where income gets deposited?
2. If GST registration required?
3. Some CAs are arguing that if your profit is more than 6% then you have to show the actual profit. My profit is more than 60% but I want to show the 6% only. Is that ok?
Here I have found a case where the assessee challenged the AO officer and won the case just showing minimum profit even though the profit was much higher.
https://indiankanoon.org/doc/151903937/
https://www.caclubindia.com/forum/profit-under-section-44ad-ada-473205.asp
Here tax2win CEO says that only a minimum of 6% is required even if profit is higher.
https://tax2win.in/guide/section-44ad-44ada-44ae
27 February 2023
1 and 2 GST registration required as you provide service in excess of 20 lacs . File LUT no GST payable. You can opt for 44AD.
3 yes it's ok.
3 yes it's ok.
Message likes :
1 times
27 February 2023
Hi Sir,
Thanks for your response. Just GST registration is needed,right?No other registration required?
Thanks for your response. Just GST registration is needed,right?No other registration required?
27 February 2023
Yes, GST registration required.
No other registration required if you don't employ more than 10 persons.
No other registration required if you don't employ more than 10 persons.
Message likes :
1 times
01 March 2023
Hi Sir,
Do I need to deduct TDS of employees in the 44AD case?
Do I need to deduct TDS of employees in the 44AD case?
01 March 2023
Yes, employees TDS required in 44AD case.
Message likes :
1 times
02 March 2023
Hi Sir,
Thanks for your response.
If there are 2 partners in this case and revenue came into only one partner's PAN account then splitting income between partners will not be an issue from another person's income tax point of view? Should He file ITR or not ?
Thanks for your response.
If there are 2 partners in this case and revenue came into only one partner's PAN account then splitting income between partners will not be an issue from another person's income tax point of view? Should He file ITR or not ?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CLOSING STOCK QUERY
- Loss of interest in PF transfer from EPFO to Trust
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- TDS on rent received on hardship compensation being rent on redevelopment of building
- F&O reporting in ITR
- CASH GIFT FROM BLOOD RELATIVE
- TDS offline utility
- Due Date Clarity
- Query regarding TDS on EPFO Higher Pension Arrears- under wrong section
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
