the limits of turnover & gross receipts have been increased to 60 lakhs and 15 lakhs. the same will be applied for presumptive taxation under sec 44AD and 44AF?
14 Replies
Amir
(Learner)
(4016 Points)
Replied 27 April 2010
Dear Osheen,
Yes the turnover limit for presumptive taxation has also been raised to Rs. 60 lacs as a consequential amendment....
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 27 April 2010
dear osheen amir bhai is right
but remember this is applicable from financial year 2010-2011.
thanks
(Guest)
. Tax Audit
In order to reduce compliance burden of small businesses and
professionals, it is proposed to increase the threshold limit of
turnover from forty lakh rupees to sixty lakh rupees in the case of
persons carrying on business and from ten lakh rupees to fifteen
lakh rupees in the case of persons carrying on profession.
Consequently, for the purpose of presumptive taxation under
section 44AD, the threshold limit would be increased to 60 lakh.
Daxa manek
(CA)
(108 Points)
Replied 27 April 2010
i have to make foreign remittance- payment for testing charges. is WHT ( withholding tax ) deductible ? if yes, what is the rate ?
Osheen Bhattacharya
(CA Final)
(241 Points)
Replied 27 April 2010
ya so its applicable for our exams..
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 27 April 2010
Hi DAXA..yes, as its a service, tax is dedcutible... For rate, i dont know, but somewhere sometime i read 40%, seems fictitious, but not sure about rate
CA Mohit kumar jain
(Searching Source of Money)
(149 Points)
Replied 27 April 2010
Yes This Limit is increased But now 44Af not applicable its provision also aplicable in 44AD
Rachit
(Analyst)
(913 Points)
Replied 27 April 2010
Daxa,
Testing charges would fall under the purview of fees for technical services liable for TDS u/s. 115 A(1)(b)(BB) and would attract TDS @ 10.30% in case amount is below 1 crore; else 10.5575%
Rahul Bansal
(Finalist)
(35929 Points)
Replied 28 April 2010
SOME MORE PROVISIONS:
For Small Business (Presumptive Income Scheme)
- 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)
vikash rathi
(Chartered Accountant)
(787 Points)
Replied 28 April 2010
apllicable for presumptive basis taxation
Santhosh Poojary
(SIEMPRE AHÍ PARA TI)
(15607 Points)
Replied 28 April 2010
Acccording to me its not applicable to May 2010 exam.....as its applicable from AY 2011-12.
Pls Correct me if iam Wrong.
Nicky
(Chartered Accountant)
(245 Points)
Replied 02 May 2010
| Originally posted by : Daxa manek | ||
 |
i have to make foreign remittance- payment for testing charges. is WHT ( withholding tax ) deductible ? if yes, what is the rate ? |
 |
This would be attracted to TDS under the provsions of section 195 and the rate of tax depends on the country you are remitting too, whether India has DTAA or not...
Secondly, you need to obtain a certificate from CA before you can process the payment through an authorized representative
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