When provisions of sec-44ab apply in sec-44ae??

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This query is : Resolved

CA komal kalra (Querist)

24 January 2012 A Person declares his income u/s 44 AE showing deemed income as Rs.3500 per month per tankar as per the provisions of this section and his gross receipts exeeds from Rs. 60 lacs,

Q-1. Is he liable for tax audit??

Section 44AB state that the provision of Audit will apply on a person carrying on business u/s 44AE and claiming his income to be lower than the profits or gains so deemed to be the profits and gains of his business.

Q-2. Is it Assumed that the above provision of sec-44AB will not apply if he declares his deemed income according to the provision of sec-44AE(i.e 3500 or above per month per goods carriage)and his gross receipts exeeds from Rs. 60 lacs?? AND

Q-3. If he owns more than ten goods carriage, than provision of tax audit apply ???

And
Q-4. Is he liable to deduct TDS under contractual payments or salary payments??

please answer this query with judgements or circulars related to it.

Yogesh Agarwal

Yogesh Agarwal (Expert)

24 January 2012 Audit under section 44AB is required if the gross turnover / receipts (TO/GR) exceeds Rs.60 Lacs and in that case income under the presumptive basis shall not be applicable.. And assessee is required mandatorily to get his accounts audited u/s 44AB...

Now if the TO/GR does not exceeds Rs.60 Lacs and the assessee wants to show his income below the limit prescribed u/s 44AE then also he needs to get his accounts audited u/s 44AB.

And so far the deduction of TDS is concerned if the assessee's books were required to get audited u/s 44AB in previous year then only he will be required to deduct TDS from the payments of current PY only...provided your assessee is an individual or HUF...

Hope you are clear

Regards

Yogesh

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

24 January 2012 SECTION 44AE: AY 2011-12
Q.1. WHETHER TAX AUDIT APPLICABLE

Person owns 10 tankers. All Heavy Goods
Vehicles (@ 5500/pm/per vehicle -case).
Gross Receipts a) 54.00lac B) 1 CRORE
.
REPLY - 44AE is applicable.
Tax audit in both the cases a)&b) is not applicable.
Reason- sub section (5) of Section 44AE.
It states that for monetary limits of 60.00 lacs in Section 44AB, Gross Receipts or Business Income of the business covered by Section 44AE, will not be considered.

CA komal kalra

CA komal kalra (Querist)

25 January 2012 thanx for the reply.
Is there any judgement of high /supreme court or circulars related with this matter??
AND
please answer my 3rd ques. if person owns more than 10 goods carriage,then provisions of tax audit applies??

CA komal kalra

CA komal kalra (Querist)

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

25 January 2012 IN CASE OF A PERSON HAVING MORE THAN 10 VEHICLES, HIS ACCOUNTS ARE REQUIRED TO BE AUDITED IN CASE GROSS RECEIPTS EXCEED 60.00
LACS.
.
IN CASE GROSS RECEIPTS DOES NOT EXCEED 60.00 LACS TAX AUDIT IS NOT REQUIRED.
.
FURTHER HE IS NOT SUPPOSED TO SHOW INCOME U/S 44AD, OR 8% OF GR, AS HE CARRIES THE BUSINESS AS REFERRED TO IN SECTION 44AE.
IT IS NOT TREATED AS ELIGIBLE BUSINESS.
.

CA komal kalra

CA komal kalra (Querist)

28 January 2012 ok thanx a lot

CA komal kalra

CA komal kalra (Querist)

28 January 2012 ok thanx a lot

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