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Saurabh Toshniwal (ca final) (2363 Points)

05 June 2013

can a partnership firm engaged in manufacturing business show its profit under section 44AD

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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

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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

Amrita vyas (chartered accountant) (2600 Points)
Replied 05 June 2013

Agreed wd ritesh sir

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