44AF

The One Says:

My friend it appears in the situation you describe your client is a retailer. In my opinion better take advantage of the Sec 44AF deemed income provision (unless you can prove that the income in lower that is !!)

Retailer is one who is in essence a middleman (between either manufacturer or wholesaler and the ultimate consumer).

Statutory Warning: I do not specialize in Tax (more in Audits) but I hate to see a query unanswered where I have something to offer however small.

Hope it helps.....

Dear Friend,

the word retail trade has not been defined in the Act. according to websters dictionary the expression retain means " the sale of goods to ultimate consumer, usually in small quantities"

therefore every business who sells the goods to ulmimate consumer falls in the defination of retail trade and would be covered by section 44AF


Regards
CA. Nitin Kumar
fcanitin9 @ yahoo.com

friend, from this assement year 2011/12 that Section 44AF will not effective. the new section 44AD covers all types of business whether that is retail or wholesale only the point is the total turnover should not exceed rs.600000 during the previous year 2010-2011