05 December 2007
A Person has a car. He use it for delevery of news paper bundles of HT and Charged hire for it.The number of car is not commercial. Whether this income is shown under 44AE or maintain seperate Books for it.
06 December 2007
Section 44AE- says about 'goods carriage' and as per explanation given with the section- 'Goods Carriage' shall have the same meaning as assigned to it in section 2 of the Motor Vehicles Act, 1988 (59 of 1988).
As per the Motor Vehicles Act- Section 2(14) "goods carriage" means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods;
Acordingly, it appears that a car if used as goods cariage will also fall under the ambit of section 4AE.
However, it is advisable here to get it confirmed that whether the assessee is utilising that goods carriage in the business of plying, hiring or leasing or he is using the car for executing in transportation contract.
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