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presumptive

Vicky (none) (26 Points)

20 April 2010

is presumptive tax applicable to small manufacturing business having turnover below audit limit that below 40 lacs total turnover

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4 Replies

Amir (Learner) (4016 Points)
Replied 20 April 2010

Dear Vicky,

Yes From FY 2010-2011, EVEN MANUFACTURING BUSINESSES ARE ALSO COVERED UNDER PRESUMPTIVE TAXATION U/S 44AD..

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Vicky (none) (26 Points)
Replied 20 April 2010

thanks Amir,

where can i get more knoledge and also please answer which book do you reffer to get answer.

please reply my question our c.a says that it is applicable only to retail business like shops and etc not for the manufacturing units though it is proprietory unit or partnership firm having two to three partners.

so kindly let me know the ref. book so that i can explain him

Vicky

Amir (Learner) (4016 Points)
Replied 20 April 2010

Dear Vicky,

Ealier it was limited to retail businesses only but from FY 2010-2011, THE BENEFIT HAS BEEN EXTENDED TO MANUFACTURING CONCERNRS AS WELL..............

I am sure ur consultant must have told you about FY 2009-10.....

Rahul Bansal (Finalist) (35929 Points)
Replied 27 April 2010

There are provisions of Section 44AD, 44AE and 44AF for determination of Profits, applicable for construction business, income from goods carriages and business of retail trade, respectively.
Under Section 44AD, the assessee can determine the profits at 8% on total turnover.
Now the section 44AD is extended to all businesses, where the Total turnover is less than 40 Lakhs.
This is applicable for any individual, HUF or a Partnership Firm (not for LLP and Companies)
Section 44AF is withdrawn as they are now covered under 44AD.
Applicable for AY 2011-12 (FY 2010-11)