THE FOURTEENTH SCHEDULE
[See section 32 (2), 86(4), 170(4), (a), 314(220) (e)]
DETERMINATION OF INCOME ON A PRESUMPTIVE BASIS
1. The income from the business specified in column (2) of the Table given below, carried on by the assessee at any time during the financial year, shall, be the amount specified in column 3 thereof, subject to the conditions specified in column (4) therein:
TABLE
|
Serial Number |
Nature of Business |
Amount of income |
Conditions |
|
(1) |
(2) |
(3) |
(4) |
|
1. |
Buisness of plying, hiring or leasing of heavy goods or light goods vehicle. |
The aggregate amount of income from all the heavy goods vehicles and light goods vehicle owned by the assessee, calculated at the rate of -
(i) five thousand rupees from each heavy goods vehicle for every month or part of a month during which the vehicle is owned by the assessee in the financial year; or
(ii) four thousand five hundred rupees from each light goods vehicle for every month or part of a month during which the vehicle is owned by the assessee in the financial year. |
The total number of heavy goods and light goods vehicles owned by the assessee in the financial year should be ten or less. |
|
2. |
Any business (other than a profession and the business referred to in serial number 1). |
Eight per cent. of the total turnover, or gross receipts, of the assessee in the financial year from the business. |
(i) the assessee is a resident;
(ii) the assessee is an individual, a Hindu undivided family or a firm excluding a limited liability partnership; and
(iii) the total turnover or gross receipts of the assessee in the financial year from the business is one crore rupees or less. |
|
3. |
Business of civil construction in connection with a turnkey power project approved by the Central Government in this behalf. |
The amount shall be a sum equal to ten per cent. of the amount paid or payable (whether in or out of India), directly or indirectly, to the assessee or to any person on his behalf on account of the civil construction. |
The assessee is a foreign company. |
|
4. |
Business of erection of plant or machinery or testing or commissioning thereof, in connection with a turnkey power project approved by the Central Government in this behalf. |
The amount shall be a sum equal to ten per cent. of the amount paid or payable (whether in or out of India), directly or indirectly, to the assessee or to any person on his behalf on account of erection, testing or commissioning. |
The assessee is a foreign company. |
|
5. |
Business of providing services or facilities in connection with the prospecting for, or extraction or production of, mineral oil or natural gas. |
The amount shall be a sum equal to fourteen per cent. of aggregate of—
(i) the amount paid or payable (whether in or out of India), directly or indirectly, to the assessee or to any person on his behalf on account of the provisions of services and facilities in connection with the prospecting for, or extraction or production of, mineral oils in India; and
(ii) the amount received or deemed to be received in India, directly or indirectly, by or on behalf of the assessee on account of the provisions of services and facilities in connection with the prospecting for, or extraction or production of, mineral oils outside India. |
The assessee is a nonresident. |
|
6. |
Business of supplying plant and machinery on hire, used or to be used, in the prospecting for, or extraction or production of, mineral oils or natural gas. |
The amount shall be a sum equal to fourteen per cent. of aggregate of—
(i) the amount paid or payable (whether in or out of India), directly or indirectly, to the assessee or to any person on his behalf on account of the supply of plant and machinery on hire, used or to be used, in the prospecting for, or extraction or production of, mineral oils in India; and
(ii) the amount received or deemed to be received in India, directly or indirectly, by or on behalf of the assessee on account of the supply of plant and machinery on hire, used or to be used, in the prospecting for, or extraction or production of, mineral oils outside India. |
The assessee is a nonresident. |
|
7. |
Business of operation of ships (including an arrangement such as slot charter, space charter or joint charter). |
Ten per cent. of transportation charges on account of the carriage of passengers, live-stock, mail or goods. |
The assessee is a nonresident. |
|
8. |
Business of operation of aircraft (including an arrangement such as slot charter, space charter or joint charter). |
Seven per cent. of the transportation charges on account of the carriage of passengers, live-stock, mail or goods. |
The assessee is a nonresident. |
2. The amount of income determined under paragraph1 shall be further increased by the excess of the amount of income, if any, actually earned by the assessee from the business over the amount specified in that paragraph.
3. The income computed under paragraph 1 shall be presumed to have been computed after giving full effect to every loss, allowance or deduction under this Code.
4. The written down value of any business asset used for the purposes of earning income from the business specified in column (2) of the Table in paragraph 1 shall be computed as if the person has claimed and has been actually allowed the deduction in respect of depreciation under section 38, initial depreciation under section 39 and terminal allowance under section 40.
5. The amount of common costs (including depreciation) attributable to the business specified in column (2) of the Table in paragraph 1 and presumed to have been allowed under Paragraph 3 shall be determined in such manner as may be prescribed.
6. The provisions of this Schedule shall not apply to—
(a) any income which is derived from any special source;
(b) any income from ordinary sources in respect of the business referred to in column (2) of the Table in paragraph 1, at the option of the assessee, if—
(i) the assessee keeps and maintains all the books of account and other documents referred to in section 87 in respect of the business irrespective of anything in that section;
(ii) the assessee gets his accounts audited and obtains a report of such audit as required under section 88 in respect of the business irrespective anything in that section;
(iii) the accounts are correct and complete to the satisfaction of the Assessing Officer;
(iv) the income can be properly deduced from the accounts; and
(v) the assessee produces the books of account and other documents before the Assessing Officer, as and when called for.
