It sec. 44ad & service tax payment related?
This query is : Resolved
09 February 2012
Here is a situation...
I would have a gross income of around 25 lacs upto March 2012 & Im planning to file the IT under Sec.44AD (income is frm website development,advertisements etc. & im sole proprietor)
I would also be paying 10.3% Service tax that comes around 2.5 lacs.
Under Sec.44AD, i shall declare 8% as profit, that is around 2lacs & i pay tax on this derived amount as per the IT slab.
My question is
1) The amount i pay as ST is high while IT would be low.Is this acceptable for the taxman or will it create any problem by asking me to pay more IT?
I would have a gross income of around 25 lacs upto March 2012 & Im planning to file the IT under Sec.44AD (income is frm website development,advertisements etc. & im sole proprietor)
I would also be paying 10.3% Service tax that comes around 2.5 lacs.
Under Sec.44AD, i shall declare 8% as profit, that is around 2lacs & i pay tax on this derived amount as per the IT slab.
My question is
1) The amount i pay as ST is high while IT would be low.Is this acceptable for the taxman or will it create any problem by asking me to pay more IT?
Ravindra Srinivasa
(Expert)
09 February 2012
Hi,
8% is calculated in the gross receipt / billings. The service tax billed is a part of it. The service tax is billed, collected and paid to the department. It is nothing to with the IT computation of 8% on gross billing.
8% is calculated in the gross receipt / billings. The service tax billed is a part of it. The service tax is billed, collected and paid to the department. It is nothing to with the IT computation of 8% on gross billing.
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