Travel agent

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2013 Our client is a travel agent, arranging tour, providing rent a cab facility also in the line of providing air tickets.

In this year total receipts from travel business is less than 10 lacs. this not include the commission on sale of air tickets.

My question is:
Can we show income from travel business on presumptive basis under section 44AD.

whether commission on sale of air ticket will disqualify him to take income on presumptive basis as the commission agent is excluded under Section 44AD or the commission will be treated as sales.

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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04 July 2013 Eligibility to claim sec. 44AD is:

Any business other than

1. Profession

2. General commission agent/ commission based agency business (w.e.f, A.Y.2011-2012)

3. Business of playing, hiring or leasing goods carriages

4. Whose turnover/gross receipt exceeds Rs 60 lacs/1 crore (From A.Y. 2013-2014)

So, you can show income from travel business u/s. 44AD and but can not show commission on sale of air ticket

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2013 Thank you sir but how we treat it as the selling air tickets are linked with the main activity. To treat the income from air tickets as other source income would be right. I m totally confused. Please advice me whether I can treat it separately

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