Section 44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2012 i have formed a partnership firm in October,2011.

Business is for providing Business auxiliary service.

i have not done any accounting for the year ended 31-3-2012.

turnover is less than 10,00,000, so it is not require to charge service tax n i have registered under service tax.

now the question is as i have not done any accounting for firm so i want to pay the tax as per SECTION 44AD. and under this proper book of accounts is not required to maintain.

so please tell me that is this policy is right ?

n and if yes then please tell me that are there any problem with service tax as proper books of accounts are not maintain.?

CA bhargava

CA bhargava (Expert)
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30 October 2012 Though the books of accounts are not maintained , u can use Sec 44AD and can show the Income more than 8% of the Turnover and can file the return., it has no implication with that of service tax., but once again check whether u had collected service tax in the invoices., as u have registered.

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2012 thank you.

No i had not collected any service tax...

n my question is that is there any provision like proper books of accounts are required to be prepared under service tax act.. ?

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CA bhargava

CA bhargava (Expert)
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30 October 2012 proper books of accounts should be maintained in any of the provisions., but the service tax department will not ask for the books of accounts know.,

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2012 thank you... could you please tell me the demerits of not maintaining of books of accounts and file the return under section 44AD.?

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2012 please also note that i am covered under service tax act as i have registered my firm.

CA bhargava

CA bhargava (Expert)
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30 October 2012 As just u have Turnover of Less than 10 lacs., as of know there are not many demerits but i advise you to consult a CA and file the return in such a way that u do not fall in the department scope. and also service tax scope and how it is done is the professional practise of the CA whom u consult.
If u have any queries
mail me:
bhargava.wisdom@gmail.com

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2012 THANK YOU

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