Can Section 44AD be used in case of export of services?

In case of service, you can opt for.44ADA not 44AD. In that case your 50% of Gross receipt will.be considered as income. This is applicable.till.gross receipt is 75 lakhs 

Please note this section is applicable.in case of individual  and not in the case of company. 

- Section 44AD is not applicable to the persons (1) who are earning income in the nature of commission or brokerage (2) who carrying on any agency business

- Resident proprietor having business income can opt for Sec 44AD

- What is the nature of services provided by you?

For detailed discussion you may opt for phone consultation 

Section - 44AD is not applicable in case of professional services covered under specified professional mentioned under Section 44AA. However, you can opt for presumptive income under Section 44ADA of Income Tax Act if your gross receipts are less than Rs.75 lakh (assuming you are not receiving any receipts in cash) and report 50% of your gross receipts as taxable income.

In your case if you have set up a private limited company specifically for this purpose it will be better to switch to a proprietorship firm in order to reduce time & cost of ROC compliances with additional Income Tax compliance of Pvt Ltd as well. Further so far as Income Tax is concerned whether you draw salary from your Pvt Ltd or show receipts in Proprietorship you will be taxed at Individual Income tax slab. In salary you can claim standard deduction of Rs.75000/- & some other deductions and in proprietorship you can claim professional expenses out of your gross receipts (in case you have a receipt of more than Rs 75 Lakh and have to go for mandatory audit under section 44AB).

Yes it is a better and more tax efficient option unless you wish to build your company and make a name for such company. Further, please note you will have to take GST number in your own name and also spend some amount to declare proper profit.

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you can do it in individual name. But please note you can go for 44ADA not 44AD

- Proprietorship firm or an individual is almost same. There is no need for separate registration. If you are having a tradename then it is termed as proprietorship. Opening of current account is required under both due to business/professional activity. Majorly Income tax and GST laws are applied to both the business structure. In both the cases income will reported on your personal PAN.

- As you have crossed the threshold, GST registration is mandatory. Export of services is treated as zero-rated and you can export services without payment of GST after obtaining LUT. Maintain copy of invoices, FIRC, bank statements etc. You can claim refund of GST paid on business/profession expenses

- Also check applicability of professional tax

- Pay advance tax to avoid levy of interest

- Check applicability of TDS liability

- To check whether you are eligible for 44AD or 44ADA, needs more information on the business/profession activity

For detailed discussion you may opt for phone consultation

There is no difference between operating under your individual name or setting up a proprietorship firm since, in both cases, all transactions are reported on your personal PAN card. You can opt for any of the two according to your choice. Both are more or less same in terms of taxation & compliance aspect.

As your turnover exceeds Rs 20 lakh, GST registration is mandatory.

Regarding income tax, you can choose between Section 44AD or 44ADA, depending on the nature of your services.

   Section 44ADA applies if your services  fall under professions specified in Section 44AA.

   Section 44AD applies if your services do not fall within the scope of Section 44AA.

So to decide whether you are eligible to opt for 44AD or 44ADA, you need to share the more details on the nature of services which you are providing.