Whether sec. 44ad is applicable to function hall for 16-17ay

Tax queries 429 views 9 replies

i would like to know whether sec 44AD i.e. 8% of Gross receipts  in case of a function hall is applicable?

Replies (9)

Yes. Eligible Business

yes it is applicable.
I think big no, because it is purely service oriented

not done any activity of trading
@ thirumalai.... it is nowhere written in sec 44ad that only trading business come under this section. so you need to read this section again.
tribhuvan @ From Assessment year 2011-12a new section 44Ad has been inserted inthe Income-tax Act to replaceexisting sec.44AD 744AF. The new Section will be aplicable to any trade,or Civil construction or any other business). The provisions of the new Section will be applicable if the following conditions are satisfied: 1.Assessee eligible for the purpose of this Section has to be an Individual/a HUF/a Partnership Firm( not being a LLP); 2.The assessee has not claimed any deduction u/s.10A,10AA,10B,10BA,80HHto 80RRB in the relevant Assessment Year; 3.The is not engaged in the business ofplying,hiring,or leasing goods carriages referred to u/s. 44AE; and 4. Total Turnover/ Gross Receipt of the Assessee in the previous year should not exceed Rs. 60.00 lakhs
From Assessment year 2011-12 new section 44Ad has been inserted inthe Income-tax Act to replace existing sec.44AD 44AF. The new Section will be aplicable to any business ( whether it is Retail trade,or Civil construction or any other business). The provisions of the new Section will be applicable if the following conditions are satisfied: 1.Assessee eligible for the purpose of this Section has to be an Individual/a HUF/a Partnership Firm( not being a LLP);
2.The assessee has not claimed any deduction u/s.10A,10AA,10B,10BA,80HHto 80RRB in the relevant Assessment Year;
3.The is not engaged in the business ofplying,hiring,or leasing goods carriages referred to u/s. 44AE; and
4. Total Turnover/ Gross Receipt of the Assessee in the previous year should not exceed Rs.1 CR

Here business consider as only a trading line
i would again say that you need to read your answer carefully. you did a good job doing copy-paste but forgot to read that it mentions "the new section applies to any retail trade or civil contruction or any other business.
Here, it includes word "any other business" which includes services also. However this section does not include professional income.

+1 Tribhuvan Aditya Singh

thanks for +1... @ ca sunil gokhale ji


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