SECTION 44AE

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Section 44AE of the Act clarifies how to calculate profits and gains for heavy goods vehicles. For goods carriages exceeding 12,000 kilograms gross vehicle weight, the calculation is based on gross weight. However, for tractors and road-rollers where gross weight isn't applicable, the calculation uses unladen weight if it exceeds 12,000 kilograms.

SACHIN KHETAWAT

SACHIN KHETAWAT (Querist)
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14 January 2021 WHICH WEIGHT OF LORRY SHOULD CONSIDER LADEN OR UNLADEN? ANY CIRCULAR

Harshit Bangar

Harshit Bangar (Expert)
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14 January 2021 the net weight which was granted by road transport authority in Registration certificate.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 November 2021 Section 2(16)- “heavy goods vehicle” Means any goods carriage the gross vehicle weight of which, or a tractor or a road-roller the unladen weight of either of which, exceeds 12,000 kilograms:

The above definitions make it clear that the assessees will have to compute the profits and gains of business under section 44AE of the Act on the basis of above definitions. It means that in respect of a “heavy goods vehicle” i.e. all goods carriage vehicle whose gross vehicle weight exceeds 12.000 kilograms, the profits and gains from each goods carriage for the purposes of section 44AE of the Act shall be at the rate of Rs. 1000/- per ton of gross vehicle weight for every month or part of the month. However in respect of a tractor or a road-roller. where the gross vehicle weight is not applicable, and unladen weight exceeds 12,000 Kilograms. the profits and gains from each goods carriage for the purposes of section 44AE of the Act shall be at the rate of Rs. 1000:- per ton of unladen weight for every month or part of the month.

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