Tax audit 44 AB

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Santhoshini .S (Querist)
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10 May 2008 every person whose total sales or turnover or gross receipts > 40 laks is subject to tax audit..does this gross recipts include service tax and vat??

MANAS ROUT

MANAS ROUT (Expert)
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10 May 2008 yes.

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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10 May 2008 as per guidence note issued by ica clause 5.6.If,however,the excise duty an/or sales tax recovered are credited separately to excise duty or sales tax a/c (being separate a/c) & payments to the authority are debited in the same a/c,they would not be included in the turnover.

R.V.RAO

R.V.RAO (Expert)
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10 May 2008 AGREE WITH SRI HEMANT.
PL. NOTE SERV. TAX NOT TO BE INCLUDED FOR TDS PURPOSE UNDER SEC194-I RENT .
PLEASE REFER CBDT CIRCULAR NO.04/2008 DT.28 TH APRIL 08
Service tax paid by the tenant doesnt partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax. Therefore it has been decided that tax deduction at source (TDS) under sections 194-I of Income-tax Act would be required to be made on the amount of rent paid/payable without including the service tax.
THEREFORE SERV. TAX NOT TO BE GROSSED UP AND ADDED AS TURNOVER BEING NOT APPLICABLE UNDER SEC 194-I-RENT.
R.V.RAO

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