Tax

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies whether GST paid can be deducted from income when filing under presumptive taxation. The consensus is that GST paid cannot be directly set off against the presumptive income calculated as 8% or 6% of turnover. For example, if your turnover is £100,000 and your presumptive taxable income is £8,000 (8% of turnover), you cannot reduce this £8,000 by the amount of GST you paid.

Harshad Khona

Harshad Khona (Querist)
Follow

13 June 2020 I file my IT return on presumptive taxation.
My question is Can we reduce total GST paid from total income annually.

PL help at earliest convenience .

Harshad khona

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

14 June 2020 Yes, you can do it but 8%/6% profit on turnover required for presumptive taxation.

Harshad Khona

Harshad Khona (Querist)
Follow

14 June 2020 I agree Sir, but I can reduce Gst paid from income arrived at by 8% or 6% of turn over.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
Follow

14 June 2020 You can not set off GST Paid with 8% or 6% of Tax Calculated.

Harshad Khona

Harshad Khona (Querist)
Follow

14 June 2020 For my clear under standing.
This means If my turn over is 100000. Then my taxable income is at 8% is 8000.
I have paid GST of 1000/
So what would be my taxable income.
Thanks,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

14 June 2020 Your taxable income is 8000 only.

Harshad Khona

Harshad Khona (Querist)
Follow

14 June 2020 Thank you very much sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

14 June 2020 Welcome................

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now