Is section 44ad applicable or not

This query is : Resolved

Guest

Guest (Querist)

23 December 2013 Sir in 2012 i incorporated as a proprietor a business of man power recruitment. Basically i am supplying the labour to a compnay and in return monthly i collect service charges (Net of TDS)from the company for the services given to them.My receipts are below 100 lakhs.I just want to know am i eligible person under section 44AD and can i pay the tax on 8% deemed income??

Guest

Guest (Querist)

23 December 2013 Also tell me whether it is mandatory to maintain books of accounts or not??

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 December 2013 1. yes you can offer under 44AD.

2. no need to maintain books as long as the receipts are below 1 Cr and income is offered at 8% or above.

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Guest

Guest (Querist)

23 December 2013 Sir but in the defination of eligible business there it is written that commision income is not covered under this head.So the service charge in real sense is a commision which i charged to them.So plz kindly help me out on this.