About applicability of 44AD.

Yes... If both are eligible as per sec.

You have to compulsorily take both businesses together under 44AD (if both businesses qualify under 44AD then only).

If anyone is qualified then section 44AD is not available to both businesses.

And as regular business income / service receipts you have to declare under ITR alongwith 44AB audit if aggregate turnover+gross receipts exceed 1 crore limit.

Separate businesses separate applicability.Business cannot be clubbed for computation of income chargeability

Section for 44AD is applicable only for traders and not for service providers. 

However, if service provider is professional then Sec 44ADA of the Income Tax Act, 1961 is applicable based on Turnover and other conditions, 

It is no where mentioned in sec 44AD that it is eligible only for traders .It is eligible for all other than who covered under sec 44AE and 44 ADA .It is clear from the definition of eligible assessee given in the section itself.
But the assessee should not have claimed sec 10AA ,income based deduction.
From my view ,there is no confusion and 44AD can be claimed straight away

Mr. Sagar, 44AD is very much applicable to all service providers. Please re-check section 44AD provisions. 

Commission agents, brokers, and few other specified activities are not covered under section 44AD. Professionals (only specified) are eligible under 44ADA.

 

Section 44AD is applicable for both traders and Service Providers.

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