Vat + service tax + income tax

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ravi sahu (Querist)
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03 December 2013 sir let us suppose that an individual is engaged in catering business. and he wants to file his return u/s 44AD . Suppose his gross receipts for the f.y. 2012-13 is 12 lacsand deemed profit @ 8% would be 96000.00/- So my question here is that 1) whether he would be liable for service tax payment and furnishing of service tax returns ( since his receipts exceeds the exemption limit ) 2) also whether he would be liable to registration under Vat and furnishing of quarterly returns ( since in this case also the limit is crossed ) . plz help me out

Hitendra Jain

Hitendra Jain (Expert)
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04 December 2013 All the law are separate and therefore their compliance are also different.

In case of Income Tax 44AD is not for filing return it is for presumptive taxation only.

If Individual's Business Receipts are less then 1 Cr then his presumed income shall be 8%. However if he wants to show that his income is below 8% then he has to get audit of his books.

Sec. 139 provides that if Total Income of the person higher than maximum exemption limit (For F Y 12-13 Rs. 2.00 Lac) then only he required to file his return.

Similarly Rs. 12.00 Lac if constitute taxable receipt under Finance Act 1994 then he is required to collect and pay Service Tax.

Similarly if Rs. 12.00 Lac are sales within respective state only which is higher than exempted limit (Generally 5.00 Lac) then the person liable under VAT Laws.

Chitesh B Jain

Chitesh B Jain (Expert)
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04 December 2013 All the law are seprate therefore all the taxes applicable there are no any relation between VAT , S. TAX and Incoe Tax so VAT & S>TAX required to pay and file their return as per requirment of law

Thanks

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