Please confirm whether the below mentioned points with reference to sec 44AD of the Income Tax Act, 1961 as applicable for the FY 2011-12 are correct:
1. Only Turnover / Gross receipts will be taken as base.
2. Need not obtain or maintain any purchase or service bills, vouchers, etc., of the business.
3. TDS provisions (where applicable) will not apply. Need not deduct TDS for any expense.
4. 40A(3) will not apply. Payments of more than Rs.20,000/- can be made for expenses.
5. directly apply 8% on Turnover/receipts and pay tax.
6. No disallowances will be done during computation.
Kindly confirm and give your comments if any.
CAclubindia
