Applicability of Section 44AA.

This query is : Resolved

Guest

Guest (Querist)

16 June 2010 Dear Experts,

I have a basic query :

ABC Private Limited is engaged in the business of Tele Films.

Whether the said company is liable to maintain accounts as per Section 44AA.

The company has only other income of about Rs.4 Lacs.

I shall wait for the response.

CA G. SURYANARAYANAN

CA G. SURYANARAYANAN (Expert)
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16 June 2010 As per the provisions of 44AA(2) which is produced herenuder, you should direct your client to maintain books of accounts as required under that section:

(2) Every person carrying on business or profession [not being a profession referred to in sub-section (1)] shall,—

(i) if his income from business or profession exceeds 62[one lakh twenty] thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession exceed or exceeds 63[ten lakh] rupees in any one of the three years immediately preceding the previous year; or

"(ii) where the business or profession is newly set up in any previous year, if his income from business or profession is likely to exceed 64[one lakh twenty] thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession are or is likely to exceed 65[ten lakh] rupees, 66[during such previous year;

Though it is other income as mentioned by you it will be deemed to be the business income and you have to maintain the books since the turnover exceeds the specified amount.