sim car & recharge cards distributor can avail u.s 44ad
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 July 2011
sir
local taluk area distributors can avail u/s 44ad declared his profit and claim refund.
local taluk area distributors can avail u/s 44ad declared his profit and claim refund.
CA PARAS BAFNA
(Expert)
19 July 2011
Gross Receipts vis-a-vis ITR 4S?
What is his Gross Receipts ?
Whether mobile SIM card and "Talk Time" sold by him ?
That may be treated as Gross Receipts and he is not in a position to show profit at the rate of 8% on it.
To my mind, it may create some problem for him.
.
Safer way-
ITR-4
The other way is to file the Return in ITR 4 on the basis of commission received by him.
If he shows reasonable profit, say 50-60% of commission received by him and file his return in ITR 4,
I think there will be no problem to him.
He should prepare P&L a/c and Balance sheet as well and do not opt for Presumptive Method in this case.
*
The Safest Option:
-------------------
In any case he should get his accounts audited and file his return
*
Let's have experts' opinion on interpretation of Gross Turnover or Receipts in this case and the better method to be adopted.
Gross Receipts vis-a-vis ITR 4S?
What is his Gross Receipts ?
Whether mobile SIM card and "Talk Time" sold by him ?
That may be treated as Gross Receipts and he is not in a position to show profit at the rate of 8% on it.
To my mind, it may create some problem for him.
.
Safer way-
ITR-4
The other way is to file the Return in ITR 4 on the basis of commission received by him.
If he shows reasonable profit, say 50-60% of commission received by him and file his return in ITR 4,
I think there will be no problem to him.
He should prepare P&L a/c and Balance sheet as well and do not opt for Presumptive Method in this case.
*
The Safest Option:
-------------------
In any case he should get his accounts audited and file his return
*
Let's have experts' opinion on interpretation of Gross Turnover or Receipts in this case and the better method to be adopted.
19 July 2011
Selling of SIM card is a business income and if the Turnover is below 60L and profit shown is 8% or more then you can claim 44AD benefit.
Keep in mind that if the provisions of 44AA are to be kept in mind.
Keep in mind that if the provisions of 44AA are to be kept in mind.
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