A Partnership Firm running an Educational Institute shall have to opt for Sec.44AD, if it is having taxable income and does not want to get the accounts Audited;
If so, whether Educational Activity comes under Business or Profession; Then, the firm has to pay tax on 8% Net Profit. pl. clarify.
17 November 2011
If an educational institution is run by professionally qualified teachers, we can say it as Profession; If it is run by a person hiring some Professional teachers and run on commercial lines, it will be treated as business; hence, Sec.44AD may applicable in such situation is to be clarified.
19 November 2011
I would like to ask you one thing over here. Whether the person who is hiring teachers is just an agent or he only runs the educational institution?
19 November 2011
He runs the educational institution. I assume that he is proprietor. Eventhough he is only hiring the qualified professionals, it would classified as profession only because the substance is that of providing education.
CAclubindia
