Assessee business - plying , hiring or leasing goods carriages
owns 10 heavy goods vehicle during the year.
if during the year assesse's turnover exceeds Rs 1 crores , will Sec 44AA and 44 AB will attract ?
RANJITH PRABHU (STUDENT) (46 Points)
02 January 2013Assessee business - plying , hiring or leasing goods carriages
owns 10 heavy goods vehicle during the year.
if during the year assesse's turnover exceeds Rs 1 crores , will Sec 44AA and 44 AB will attract ?
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 02 January 2013
Hi Ranjith,
Provisions of presumptive taxation (Sec 44AD & 44AE) are applicable to assessees who are not subject to Tax Audit.
If it is applicable to assessee, then he will have to maintain books of accounts and get them audited. He cannot escape from it by applying Sec 44AE.
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 08 January 2013
If the turnover crosses the 1cr mark, then the assessee is liable to maintain the books of accounts & get them audited, also submit the Tax Audit Report before 30th Sept. In such case he cannot show his income under presumptive basis u/s 44AE.
section 44AA is applicable only in case of professionals, it is not applicable for assessee carrying on business.
For section 44AA the books of accounts are being prescribed under Rule 6F of the I-T Rules. For other assessees the books of accounts shud be so maintained so as to enable the AO to compute the taxable income. This may include Cash/Bank Book, Sales/Purchase Register, Journal Register, vouchers, sale bills & such other documents.
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