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

surya prakash (PROPRIETOR) (36 Points)

09 July 2016

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

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9 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177015 Points)
Replied 09 July 2016

Yes. Eligible Business

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Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 09 July 2016

yes it is applicable.

Thirumalai Kumar (Practicing Cost Accountant) (213 Points)
Replied 09 July 2016

I think big no, because it is purely service oriented

not done any activity of trading

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 09 July 2016

@ thirumalai.... it is nowhere written in sec 44ad that only trading business come under this section. so you need to read this section again.

Thirumalai Kumar (Practicing Cost Accountant) (213 Points)
Replied 10 July 2016

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

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Thirumalai Kumar (Practicing Cost Accountant) (213 Points)
Replied 10 July 2016

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

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 10 July 2016

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.