Yes you qualify for computing tax u/s 44AD.
If you require any help in filing return do let me know.
Thank you
Server Leasing, Server Maintenance Business. Do I qualify for Section 44AD?
Hi, My business relates to Server Leasing, Server Maintenance Business and I supply to clients who intends to use it for their purpose. Do I qualify to compute tax under the Section 44AD?
Asked 6 years ago in Income Tax
Hi,
Hope you are doing well !!
Yes, you can compute tax under the section 44AD.
Thank you for the responses. We certainly need help for filing the returns as well. To clarify one earlier communication so we are on the same page. We get raw servers from a vendor (X) and configure it with software and sub lease it to clients A, B, C 1. The clients (A,B,C) who lease our servers deduct TDS @ 2%. Is this correct? 2. I assume Section 44AD the taxation would be @ 6% since all our payments to and from my induvidual account are digitally through banks or credit card. 3. The Business code for the same would be 14008?
Asked 6 years ago
You are basically renting out service after some modifications. I think 08009 would be more appropriate or 14010.
14008 is just for maintenance it doesn't cover renting which is your core business.
Yes the client is correct in deducting that TDS.
Yes you can show 6% of your total receipt as income.
You can mail me the details and I shall file your ITR.
Thank you
1. Yes, it is correct.
2.Yes. Net income will be considered 6% in case of digital receipts.
3.It is advisable to show the same under the code 14010.
COMPUTER AND RELATED SERVICES
Other computation related services n.e.c.
14010
Dear Sir,
Yes, you can take the benefit of presumptive taxation scheme u/s 44ad.
1. Yes.
2. Yes.
3. Business code-14010.
Hi,
- Yes, you can avail the benefit of presumptive taxation scheme if the turnover from the business does not exceeds Rs.2crores. For digital receipts, income would be considered @6% otherwise 8%.
- TDS @2% will be deducted from the final tax amount. 6% and 8% is income taxable and not tax amount.
Hi,
Yes, you are eligible for 44AD.
1. If you are a company/llp/firm, then TDS @2% is ok. If you are an individual/huf, then TDS should be @1%.
2. Yes
3. The business code should be 08006.
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