Gross receipt calculation u/s 44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2013 Sir,
In case of F&O business, Gross receipts = Profit + Loss.
My query is,
whether STT amount also is to be added in the gross receipts figure, and whether we can show STT in expenses; u/s 44AD in ITR 4?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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09 August 2013 STT amount will NOT be added to the gross receipts.
Further STT will also NOT be allowed as deduction because Section 44AD assumes that 8% is AFTER allowing ALL expenses.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2013 Sir,
In ITR 4, Part A- P&L: No Account case-
There are fields:
1. Gross receipts
2. Gross Profit
3. Expenses
4. Net Profit
The Income which should be 8% is the Net Profit figure if I'm not wrong.

I'm asking whether we should show STT in Gross Receipts and Expenses.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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09 August 2013 8% is of gross receipts and not net profit.
gorss receipts does not include STT.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2013 The Net profit Figure should be 8% or more of Gross receipts, right since to calculate Gross receipts we add loss figure too?

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2013 The profit amount that we take to calculate gross receipts, whether it is net profit on sales i.e S.P less STT or the S.P?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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09 August 2013 gross means without adding or dedcuting anything.

e.g gross sales without deducting any exp.

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2013 Can you please provide me a link to the guidance note of institute that relates to gross receipts u/s 44AD?

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Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2013 So, according to you no effect should be given to STT element, neither in gross receipts nor should it be shown as expense..?
so it means that if I have profit figure which is after reduction of STT i.e net profit, then I need to add back the STT amount...? (All in case of F&O business)

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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09 August 2013 there is no guidance note on sec 44AD by icai.
search in share files for guidance note on sec 44AB as revised by ICAi.

Querist : Anonymous

Querist : Anonymous (Querist)