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Professional fees for directors & clarification on set 44 ad

1339 views 4 replies

Hi,

Pl help me in the following queries.

 

1. Can a Pvt Ltd Company have a technical advisor as a Directory & Pay Professional Fees to a for his technical consultation. Note that, the company is not paying any monthly salaries.

If the answer to the question is 'Yes' - then is there any limitation for such fees?

 

2. I read about the recent inclusion of Sec 44 ada - My question here is, can the above induvidual who gets professional fees from a company for technical consultation employ this section for calculation of incomes based on presumptive taxation since 'tech consultant' are eligible for using this option.

Replies (4)

Eligible persons who can take advantage of the presumptive taxation scheme of section 44ADA

A person resident in India engaged in following professions can take advantage of presumptive taxation scheme of section 44ADA:-

1) Legal

2) Medical

3) Engineering or architectural

4) Accountancy

5) Technical consultancy

6) Interior decoration

7) Any other profession as notified by CBDT

Any such qualified person when receives any consultation charges from any of his clients......

...can declare the fees under presumptive scheme i.e. 44ADA, of IT act.

Hi

Director Received - Director Remuneration (in the form of Service Charges) during the FY 2018-19. Can he eligible for Sec 44AD and is there any case law related to this issue

 

Please clarify

1. No.

2. Recently a judgement announced by Chennai bench of ITAT. Please google it.

Pls let us know Citation of judgment announced by Chennai bench of ITAT


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