Retail Trade - 44AF - Income Tax

Hi All,

Can anybody tell me how do we define "Retail Trade" for the purpose of 44AF.

For example, Sugar Industry is ultimate consumer of Nickel Screens. So when Mr. X sells Screens to SSK Industries (Sugar Industry) he should be treated as Retailer (Retail is defined in Webster's Dictionary as sell to ultimate consumer, usually in small quantities) and allowed the benefit of 44AF. I think so.

Please correct me, if wrong.

Mahesh Biwalkar, Pune

Under this section, a retail trader can compute her gains at 5 per cent of her gross receipts or sales. This applies to any retailer of goods and merchandise whose total turnover does not exceed Rs 40 lakh. However, it does not apply to manufacturers, processors, and people running an eatery, operating/leasing motor cars or engaged in a vocation.

While section 44AF does not define ‘retail trade’ and ‘total turnover’, the Random House Dictionary defines the term ‘retail’ as "the sale of goods to the ultimate consumers, usually in small quantities". The term ‘total turnover’ means the aggregate amount for which sales are effected after deductions for goods that have been returned, discounts and the like

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Retail Trade - 44AF

Mahesh

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