Sec. 44ad - commission income

Tax queries 1530 views 5 replies

Hello friends,

Can i apply section 44AD to commission income earned from shipping company?

Regards,

Shraddha

Replies (5)

U/s 44 AD, assessee must engaged in the business of civil construction or supply of labour for civil construction, only the income attributable for this purpose is eligible for 44AD.

Commission Income generally is not eligible for 44 AD, but if that Commission income is earned because of supply of labour for civil construction, then that income is eligible for 44AD

In your case, you termed as "the commission income from Shipping Company", first analyse for which purpose the assessee earned commission.

The nature of service provided to shipping company against which commission is received would be relevant.

 

You can consider the income to chargeable to tax  u/s 44AD as Presuptive Income, provided the income is not assessable u/s44AB .

Hi,

section 44 Ad - commission income

44Ad will be applicable, most carefull turnover will be taken 60 lakh but not 15 lakh still it is commission income.

refer circular 465.

@ vishnupriya wef AY 11-12 44AD applies to all business other than plying, hiring.

And accordingly commission can be assessed under 44AD


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