WILL WORKS CONTRACT BE COVERED U/S 44 AD . MY CLIENT PROVIDES GENERATOR SERVICE TO BANKS , INSTITUTIONS , OFFICES , ON OCCASSIONS LIKE MARRIAGES AND PARTIES ETC .THEIR TDS IS DEDUCTED U/S 194C.
44AD EXCLUDES , PROFESSION U/S 44AA(1) , I SUGGESTED MY CLIENT TO COVER THEIR FIRM U/S 44 AD AND PAY TAX ON 8% OF PROFIT , IS IT CORRECT . THEIR TURNOVER IS LESS THAN 1 CRORE. PLZ REPLY URGENTLY
yes you are correct as per section 44AD
For the purposes of this section,—
(a) "eligible assessee" means,—
(i) an individual, Hindu undivided family or a partnership firm, who is a resident, but not a limited liability partnership firm as defined under clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009); and
(ii) who has not claimed deduction under any of the sections 10A, 10AA, 10B, 10BA or deduction under any provisions of Chapter VIA under the heading "C. - Deductions in respect of certain incomes" in the relevant assessment year;
(b) "eligible business" means,—
(i) any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE; and
(ii) whose total turnover or gross receipts in the previous year does not exceed an amount of one crore rupees.
44AD(6) shall not apply to—
(i) a person carrying on profession as referred to in sub-section (1) of section 44AA;
(ii) a person earning income in the nature of commission or brokerage; or
(iii) a person carrying on any agency business.
My question is that a cab driver is earning income under S194C, he also has income from Insurance commission which is his minor income. Now can he avail the benefits of S 44AD? Please advice.
Shashank
CAclubindia
