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About Sewing Business

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dear team,

i have my one of clint who have Sewing Business, he buy row material and then do stitching in godown, and then sale, so is this a profession it u/s 44ada ( above 50 % profit) or is it us/44ad (above 8% profit) ?? and what to do use like "profit and loss" or "income or expenditure" ?? 

Replies (1)
Professionals mentioned under Section 44AA of the Income Tax Act, 1961, whose total gross receipts are less than Rs 50 lakh in a year are the eligible for 44ada only. your case doesn't cover in 44AA so you have to go for 44ad only. further since you are not purely service provider so profit & loss is applicable to you


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