jewellery business

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2009 a jeweller is buying old gold, polishing the same and re-selling to customers. is th is retail trade covered u/s 44af.

further, he also buys from bombay gold merchants and sells the same in his shop. but major purchases are locally old gold

please clarify

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
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31 December 2009 Dear
Earlier Sec.44AF is applicable only to Retailer shop keeper specially to Grocer , Finance Act 2009 has eliminated sec 44AF & Amended the Sec 44AD & now from this Financial year any person whose turnover is below Rs40 Lac can take the presumptive taxation then he has to paid Tax @8% of turnover.
In your case if Turnover is below 40 Lac then you can opt Presumptive Taxation u/s 44AD.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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31 December 2009 thanks

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Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2010 But the assessing officer is of the opinion that since polishng is done, it is not retail trade. Can you give any case laws to substantiate this.