Section 44ad

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This query is : Resolved

Gaurav Mahajan (Querist)

25 July 2017 If I procure clothes from someone and I do some work on cloths (put sippiyan/other particles on cloths) and then return the cloths to the owner. I get Rs. 15-20 per suit I.e 1000 per day approximately. Now whether I can file my return under section 44 ad or not? I have not maintained any books?

Amol S Joglekar

Amol S Joglekar (Expert)

25 July 2017 yes, you can go by section 44AD

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RAJA P M

RAJA P M (Expert)

25 July 2017 Yes. You can file u/s 44AD...

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RAJA P M

RAJA P M (Expert)

25 July 2017 How to you issue bill to the owner. If you get service charges only...? Any other Income or this is only income...?

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Gaurav Mahajan

Gaurav Mahajan (Querist)

25 July 2017 Other I have Fd interest. But my main concern was whether that 15-20per suit covers under definition of commission or brokerage? And I do not raise any bill, as I work at very low scale.

RAJA P M

RAJA P M (Expert)

25 July 2017 I think this is not under Commission head. Its purely service / Labour work.
Just you put some work and give to owner this is purely labour. if not you receive material from supplier in your name and put some labour work then you ll be sale it. Its considered sales and labour work...

Amol S Joglekar

Amol S Joglekar (Expert)

25 July 2017 It is NEITHER commission NOR brokerage. Can you please explain why you feel that it is commissison/brokerage?

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