Presumptive income u/s 44ae

This query is : Resolved

Kamlesh Shyamlal Khanwani (Querist)
Follow

29 June 2012 Sir, as a partnership firm, our business is plying goods carriage vehicles on hire and we own 4 heavy vehicles and apart from that, we also obtain vehicles on hire and ply them on hire.. We do not maintain separate books of account for our own vehicles and plied vehicles.
Suggest, how can we claim benefit u/s 44AE??

Also, if we start maintaining separate books of account for the two i.e. our own vehicles and hired vehicles. Can we claim benefit u/s 44AE for own vehicles and benefit u/s 44AD for leased/hired vehicles???

Please Elaborate...........

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

30 June 2012 Yes sir, You can do so and have to do so.
.

Kamlesh Shyamlal Khanwani

Kamlesh Shyamlal Khanwani (Querist)
Follow

03 July 2012 Could you please elobrate?

Upgrade to CAclubindia Pro. Subscribe Now!

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

03 July 2012 You may keep separate Consignment Note Books for owned Vehicles as well as Vehicles taken on hire.
.
Total the Gross Receipts from the Consignment Register ( Hired Vehicles).
Take Profit @ 8% on Gross Receipts U/s 44AE.
..
You need not to compute any thing for owned vehicles on the basis of CN.
The basis for computation of income will be the month or part of the month during the vehicle has been owned during the Financial year. @5000/- per month or part of the month, you have to compute income U/s 44AE.
.

Message likes : 1 times