Accounting entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2016 A contractor receives service tax refund during the year, will it be treated as income and Taxable?? Bill raised by the contractor includes tds deducted, service tax and vat deducted, will service tax be also included in the turnover??

Sandeep Dharar

Sandeep Dharar (Expert)
Follow

03 September 2016 Normally in Service Tax we do not get refund, the excess part is utilised in the next half/year liability. But as per ur case, it is not an income it is refund, so u must capitalised it. But if U have received any interest on the refund it will b treated as ur income and is taxable. Y service tax to b included in turnover dear, its not ur income its ur liability which u have to pay to the govt. make ur concept clear regarding Duties & Taxes and Income.

Message likes : 1 times