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Can a transport firm file i.t return u/s 44ad?

Subrata Bose (Indipendent) (45 Points)

28 March 2014

Sir,

Can a partnership firm of transport file income tax return u/s 44AD, when operating business only by hiring vehicles ?

Thanks in advance

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2 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 29 March 2014

Originally posted by : Subrata Bose
	Sir, Can a partnership firm of transport file income tax return u/s 44AD, when operating business only by hiring vehicles ? Thanks in advance

As per para 32.1 of Circular No. 684, dated 10.06.1994, sec. 44AE is not applicable to the persons who do not own any truck but operate trucks taken on hire.
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As per sec. 44AD, "eligible business" means any business except the business of plying, hiring or leasing goods carriages referred to in sec. 44AE.
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So, I think as sec. 44AE is not applicable in your case, you may take the benefit of sec. 44AD.