can a partnership firm engaged in manufacturing business show its profit under section 44AD
5 Replies
Ritesh
(Advisory Services)
(101 Points)
Replied 05 June 2013
Eligible assessee is:
•An Individual or
•Hindu undivided family or
•A partnership firm (not being a limited liability firm)
The assessee should be engaged in any business (whether wholesale trading or retail trading or any other business) except Business of plying, hiring or leasing goods carriages (such business is covered under Sec. 44AE)
In your query, assessee is Partnerhsip Firm and is in the business of manufacturing. Hence, Sec. 44AD is applicable
veeru sagar
(BBE,M.com,CA Final )
(468 Points)
Replied 05 June 2013
Under section44AD Eligible Assessee means:-
(1) an individual (2) Hindu undivided family (3) a partnership firm (4)who is a resident.
but does not include firm limited asliability defined under clause (n) of sub-section (1) of section 2 of the Limited Liability ,Partnership act 2008.
Who all are the aseessees not covered under Section 44AD?
-
Individual who is not resident
-
HUF who is not Resident
-
Association of Person
-
Firm having non resident Status.
-
A local Authority
-
A co-operative Society
-
Limited Liability Partnership bith Indian as well as Foreign
-
Companies both Domestic and Foreign comapny
-
Every Artificial Juridical Person
As per the above explaination the partnership firm can opt the scheme of presumptive income under section 44AD
Rohit Aggarwal
(ACA Bcom (H) MBA MCom)
(470 Points)
Replied 05 June 2013
Yes Mr. Saurabh, the partnership firm whose residential status is "Resident" and engaged in business of manufacturing can opt to show its profit under Section 44AD (eligibility status explained well above).
Thanks.
C.A SUVAJIT SAHU
(CA ( In Practice ))
(708 Points)
Replied 06 June 2013
| Originally posted by : Ritesh | ||
 |
Eligible assessee is: •An Individual or •Hindu undivided family or •A partnership firm (not being a limited liability firm) The assessee should be engaged in any business (whether wholesale trading or retail trading or any other business) except Business of plying, hiring or leasing goods carriages (such business is covered under Sec. 44AE) In your query, assessee is Partnerhsip Firm and is in the business of manufacturing. Hence, Sec. 44AD is applicable |
 |
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