Excise Duty paid on the Equipment Purchased for Power Projects has been Refunded as Duty Draw Back? Please advice whether the amount refunded is taxable? --- Urgent please.
Rajesh
(student)
(76 Points)
Replied 18 December 2010
Exercise duty is taxable for the manufacturing entities in case of duty draw back the amount refunded is not taxable
Azim Khan ACA,CS,CMA*,LLB*
(Proprietor)
(1312 Points)
Replied 18 December 2010
Yes it is taxable.
duty of excise is allowed as deduction while computing the profits under the Income from business and profession. therefore, it is taken as a business income if it subsequently received back or refunded .
CA Rajesh Saroj
(B.Com A.C.A. C.S. LL.B. 2nd Year)
(89 Points)
Replied 20 December 2010
I also agree with Azim Sir.
CAclubindia
