44ad & 44aa
This query is : Resolved
23 June 2014
what is the relevance of 44AA if 44AD is necessarily be used ?
IF turn over is 20 lakh and profit is 1.5 lakh i.e. less than 8% then a/c not to be maintained then what is the significance of 44AA. what is the significance of limit provided in sec 44AA i.e. 10 lakh or profit 1.5 lakh.
Can u tell me an example when maintenance of a/c's is governed by sec 44AA ?
(1)If Profit is 8% or more then a/c's not to be maintained. (2)If it is less than 8% and profit does not exceed basic exemption limit then a/c not to be maintained (3)IF Profit is less than 8% and it is more than basic exemption slab then only a/c's to be maintained. So this all is governed by Sec 44AD and here we can see no significance of 44AA. Can u Plz narrate me an examplw where a/c's maintenance is goverened by sec 44AA.
(Except in the case of professionals )
IF turn over is 20 lakh and profit is 1.5 lakh i.e. less than 8% then a/c not to be maintained then what is the significance of 44AA. what is the significance of limit provided in sec 44AA i.e. 10 lakh or profit 1.5 lakh.
Can u tell me an example when maintenance of a/c's is governed by sec 44AA ?
(1)If Profit is 8% or more then a/c's not to be maintained. (2)If it is less than 8% and profit does not exceed basic exemption limit then a/c not to be maintained (3)IF Profit is less than 8% and it is more than basic exemption slab then only a/c's to be maintained. So this all is governed by Sec 44AD and here we can see no significance of 44AA. Can u Plz narrate me an examplw where a/c's maintenance is goverened by sec 44AA.
(Except in the case of professionals )
23 June 2014
please read carefully
section 44AD is overruled section, so whatever mention in this section will apply.
now clarification of your question
1. if your total turnover do not exceed rs. 1 cr. (i.e. audit limit) then you can use this benefit.
requirement of maintaining books of account.
1. if your profit is being 8 % or more than 8% of total turnover and income exceed basic exemption limit, then you do not require to maintain the books of account.
2. if your profit is being less than 8% and the profit do not exceed the basic exemption limit which is liable to tax, then you are not in requirement of maintaining of books of account.
3. if your total income less than 8% and the same is being exceed the basic exemption limit, then you have to maintain books of account and provision of sec. 44AB also applies.
section 44AD is overruled section, so whatever mention in this section will apply.
now clarification of your question
1. if your total turnover do not exceed rs. 1 cr. (i.e. audit limit) then you can use this benefit.
requirement of maintaining books of account.
1. if your profit is being 8 % or more than 8% of total turnover and income exceed basic exemption limit, then you do not require to maintain the books of account.
2. if your profit is being less than 8% and the profit do not exceed the basic exemption limit which is liable to tax, then you are not in requirement of maintaining of books of account.
3. if your total income less than 8% and the same is being exceed the basic exemption limit, then you have to maintain books of account and provision of sec. 44AB also applies.
23 June 2014
u/s 44AA book of account are maintain if your profit is more than 120000/- in year .
and u/s 44AD if your sale less than Rs. 1.00 crores then you can declare profit @ 8% w/o maintain book of accounts .
If your sales is more then 1.00 cores then profit % is not revelence you have to keep books of account and get audit report on that .
and u/s 44AD if your sale less than Rs. 1.00 crores then you can declare profit @ 8% w/o maintain book of accounts .
If your sales is more then 1.00 cores then profit % is not revelence you have to keep books of account and get audit report on that .
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Confusion around Form 26QB fields
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Tds on building rent monthly
- Should I report my US salary for January, February, March in Schedule FA?
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
