Sec 44ad applicability

Can the follwing activities be considered as Business for the purpose of return filing u/s 44AD :

1. A proprietorship concern carrying on the business of developing software and applications and web designing?

2. A partnership doing the activity of recruiting agents and other human resource for insurance companies?

Plz reply asap

Replies (6)

as per me 1st should come under technical consultancy & 2nd one under agency business...hence both the businees comes under 44AD..

But agency business cannot be considered for Sec 44AD as per Finance act 2012 right?

Sec 44AD is not applicable to Profession referred under section 44AA.under sec 44AA both Information Technology and Technical consultancy services.so in ur first case,sec 44AD will not be applicable.similarly in second case too, is itself exempted under sec 44AD as it may cover under Agency business or comission and brokerage.

thank you and pls intimate me if iam wrong and also in case of above assertion is correct and ur doubt is cleared

I agree.
But for example take the case of a doctor who is covered u/s 44AA. Doctor is a professional but we cant say so in the case of a hospital.

In the first case, they are providing technical services by developing websites and mobile applications. 

In the second case, why should we take it as an agency business if it like a contract to recruit human resource for the companies. They are not insurance agents but procuring such agents.

 

Sorry i forgot to write "NOT" in 1st comment....i mean to say in both the cases 44AD is not applicable..

Originally posted by : nuli swami ayyappa

Sec 44AD is not applicable to Profession referred under section 44AA.under sec 44AA both Information Technology and Technical consultancy services.so in ur first case,sec 44AD will not be applicable.similarly in second case too, is itself exempted under sec 44AD as it may cover under Agency business or comission and brokerage.

thank you and pls intimate me if iam wrong and also in case of above assertion is correct and ur doubt is cleared

Agreed !!

 

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