How income is to be calculated from the business of 1) Dairy Farming 2) Catering?
7 Replies
sadashiv Rupchand Gaikwad
(Proprietor)
(521 Points)
Replied 11 December 2011
Now it cover u/s44AD. You may keep accounting data, Prepare fianacial statement.
CA Hardik Bunha
(self)
(2121 Points)
Replied 11 December 2011
i think dairy farming partly covered in agricultural. catering take income after service tax.
CS RAJESH C.CHOUDHARY
(ASSISTANT MANAGER)
(14607 Points)
Replied 12 December 2011
You would need to maintain proper books of accounts booking all the receipts and costs from such business and the Profits can be derived at the end of the year by drawing the Profit and loss account.Presumptive taxation is not applicable to these business so no other option other than drawing proper accounts.
CHOTAI DHARMESH
(ARTICLE)
(38 Points)
Replied 03 January 2012
if the business is covered under eligible Business(u/s 44AD) then you may follow Sec. 44AD.
for further clarification rfer blog...
Hari Wadhwa
(CA in Practice)
(485 Points)
Replied 03 January 2012
Certain income which is not treated as Agricultural Income;
(a) Income from poultry farming.
(b) Income from bee hiving.
(c) Income from sale of spontaneously grown trees.
(d) Income from dairy farming.
(e) Purchase of standing crop.
(f) Dividend paid by a company out of its agriculture income.
(g) Income of salt produced by flooding the land with sea water.
(h) Royalty income from mines.
(i) Income from butter and cheese making.
(j) Receipts from TV serial shooting in farm house is not agriculture income.
(k) Income from Plantation companies
Hari Wadhwa
(CA in Practice)
(485 Points)
Replied 03 January 2012
Considering the above, Section 44AD can be adopted as well subject to fullfilment of other conditions as to "Eligible Assessee" & "Turnover" etc.
If do not fullfill these conditions then fmaintain proper books of accounts & compute the income under the normal provisions of PGBP.
Eligible Assessee :-
• (i) an individual
• (2) Hindu undivided family
• (3) a partnership firm
• who is a resident.
• but not a limited liability partnership firm
“eligible business” means,—
• (i) any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE; and
• (ii) whose total turnover or gross receipts in the previous year does not exceed an amount of [sixty lakh rupees].
Recent Topics
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
Related Threads
CAclubindia
