sec 44AF

Tax queries 837 views 3 replies

Guest

can any one tell me how to know who is retail trader or wholesale trader

for computing PTS u/s 44AF. Also explain if that trader is dealing in

costly goods(say Tyre which cost 10000 per piece)

Replies (3)

Audi murty

Manger

35 Points Joined October 2008

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

CA.Tarun Maheshwari

CA DISA

7150 Points Joined March 2008

Good reply by Mr. Murty

CA Sakshi

CA Practice

309 Points Joined December 2008

Wholesalers purchase goods from Manufacturers in lumpsum and then sale to retail outlets. Retail outlets sale to consumers. Mr. Murty reply is perfect.