Section 44ad urgent

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2012 Dear Experts,
One of my client runs 2 buses on the basis of per KM contract with U.P. roadways. His gross payment for the FY 2011-12 is around 17 lacs and thereon the tds is deducted @1% u/s 194C. Whether he can opt Section 44AD or he has to go for Section 44AE. In my view Section 44AE is only meant for goods carriage vehicles whereas bus carries to passanger not to goods.

Please advise me.

Amol S Joglekar

Amol S Joglekar (Expert)
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22 August 2012 the meaning as assigned to 'goods carriage' under section 2 of motor vehicle act 1988 solely aims at GOODS CARRIAGE. The passenger vehicles are out of the purview.

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2012 So he can opt 44AD ?

Amol S Joglekar

Amol S Joglekar (Expert)
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23 August 2012 yes, definitely. It falls under eligible business as contemplated u/s 44AD

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