As 44ab st included or not
This query is : Resolved
10 May 2012
Dear Sir
An Assessee Doing Contract work and he is also a Service Tax Registration No.
1). His Total Gross Receipts During the FY-2011-2012 Rs. 63,97,400 out of this
Contract Work amount is Rs. 58,00,000 and
Service Tax is Rs. 5,97,400 at this situation assessee is doing his account audited or he is offerd 8% on 58,00,000 and filed his return in ITR-4S please explain.
Thanking you
An Assessee Doing Contract work and he is also a Service Tax Registration No.
1). His Total Gross Receipts During the FY-2011-2012 Rs. 63,97,400 out of this
Contract Work amount is Rs. 58,00,000 and
Service Tax is Rs. 5,97,400 at this situation assessee is doing his account audited or he is offerd 8% on 58,00,000 and filed his return in ITR-4S please explain.
Thanking you
10 May 2012
If service tax collected is accounted separately and this method has been followed regularly ,then turnover for the purpose of section 44AB is Rs. 58 lakhs only.
Presumptive taxation rate can be opted if the assessee so wishes.
Presumptive taxation rate can be opted if the assessee so wishes.
10 May 2012
Dear Mr. Rajesh,
The service tax shall not, in any case, form part of your turnover irrespective of method of accounting followed by you.
You are not allowed to book service tax liability as your income as per AS-9.It is a statutory payment which is collected by you from the client and paid to the govt.
Accordingly, you can claim the benefit of presumptive taxation by offering profit @8% of turnover and tax shall be paid on such amount.
Also note, the tax rate shall remain the same and it will be paid on such 8% of turnover.
The service tax shall not, in any case, form part of your turnover irrespective of method of accounting followed by you.
You are not allowed to book service tax liability as your income as per AS-9.It is a statutory payment which is collected by you from the client and paid to the govt.
Accordingly, you can claim the benefit of presumptive taxation by offering profit @8% of turnover and tax shall be paid on such amount.
Also note, the tax rate shall remain the same and it will be paid on such 8% of turnover.
10 May 2012
Amit Ji
Method of accounting is relevant. Please see section 145A(a)(i) of the Income tax Act,1961 and page 8 of ICAI publication viz., "issues on Tax Audit" (June 2010 edition).
Method of accounting is relevant. Please see section 145A(a)(i) of the Income tax Act,1961 and page 8 of ICAI publication viz., "issues on Tax Audit" (June 2010 edition).
10 May 2012
Sir,
I agree with the answer given given by you.
But if the assessee is credited the service tax amount in Profit & loss then the corresponding amount will be debited to Profit & Loss A/c.
So, ultimately there would be no effect in Profit & loss A/c.
Hence, it is better to credit the liability A/c to compaly with AS and for claiming the benefit under Section 44AD.
I agree with the answer given given by you.
But if the assessee is credited the service tax amount in Profit & loss then the corresponding amount will be debited to Profit & Loss A/c.
So, ultimately there would be no effect in Profit & loss A/c.
Hence, it is better to credit the liability A/c to compaly with AS and for claiming the benefit under Section 44AD.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Sales return eway bill
- Treatment of Pension ?annuity returns on PMVY
- GST ON DAMAGED GOODS
- Long Term Service award taxability in hands of company
- Loan by Partnership Firm
- REGARDING GST LIABILITY/....
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
