In current financial year of 2020-21 we have received custom duty drawback of Rs.13000.
My question is the duty drawback received on export of goods are income of the business ?
If yes, then undertaking have to pay double income tax on profit on export sale + duty drawback.
Please clarify & also explain the passing of entries on the books.
Duty drawback is considered taxable business income under Section 28 of the Income Tax Act. It should be accounted for as revenue in your books, and you will pay tax on it as part of your business profits.
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