Income from car hiring

This query is : Resolved

lalit sharma (Querist)
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19 July 2015 R/Sir,
I have business of car Hiring. i have 2 cars. receipts from this business during fy 2014-15 was Rs.11,00,000 approx. i want to know whether service tax provision is applicable on me or not. pl. guide complete taxation provision including income tax.
thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 July 2015 Service tax provisions applicable to you in view of your receipts exceeds 10 lacs. you have to register under service tax and pay service tax for receipts in excess 10 lacs this year and from next year from the service tax payable from Rupee one(no exemption for second year).
As your turnover is less than one crore you can opt for 44AD, under this option your profit will be worked out 8% of your turnover, which is below taxable limit and no income tax will be payable by you.