Business or agri income

**KK** (B.Com. MBA. Pursuing CA & CS)   (255 Points)

24 August 2012  



Type of Business: Purchasing coconut shell from farmers as raw material and converting it to charcoal manually without using any machinery and distributing it to various cities only domestic.

My queries : 1. Whether it comes under Agricultural Income or Business Income?

                       2. Whether TN VAT is applicable for this Charcoal?

                       3. Two members are jointly doing this business.. whether partnership firm or pvt ltd company to be formed?