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Question ID : 40874

Section 44AE v/s Section 44AD

Can the transporter who doesn't own any Vehicle (trucks) but hires the vehicles from somebody for his transport business claim the benefit of section 44AE ? If not then can he avail the benefit under 44AD ?? Thanks in Advance..!!

Posted by SHRUTI KUTE on Oct 19, 2020

Filed Under DIRECT TAXES

Answer ID : 80780

Cannot opt 44AE,but can choose 44AD My inference is , 44AE refers to the business of hiring through "owned vehicles". As the taxpayer is carrying hiring business through hired vehicles such business would not fall under 44AE but could come under the purview of 44AD.

Posted by B.CHACKRAPANI WARRIER on Oct 19, 2020
Answer ID : 80781

Section 44AE is applicable to person who own less than 10 vehicles. It is not applicable to person who does not own any vehicle, but taken vehicles on hire. However, such person can avail benefit of section 44AD.

Posted by CA. chunauti dholakia on Oct 22, 2020