Service tax taken or not for 44ad purpouse (please reply its

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Dear Sir

In the FY - 2011 - 2012 I was doing a contract business and I am collected a Total Sum of Rs. 65,00,000/- out of which Contract Amount and Service tax is Rs. 58,93,019 and Rs. 6,06,981 respectively at this time I am Eligible for Opting Sec 44AD or my account compulsory Audited U/s 44AB because Contract amount + Service Tax is Crossed Tax Audit Thresh hold 58,93,019+6,06,981=65,00,000

 

Please tell

Its urgent

Thanking you

Replies (3)

In my opinion, it should be eligible for 44AD, since the amount of service tax cannot be included in tunrover, since it is a statutory liability.....

 

 

In my opinion Service Tax should be included even if Assessee have not included the same in Profit and Loss account and shown the same as current Liability.
 
Section 145A of the Income Tax Act,1961  states that purchase , sale and inventory shall be valued by taking into account  the amount of any tax, duty, cess or fee.
 
Tax Audit will be applicable.

You need not require to get your accounts audited u/s 44AB.

That is you can avail benefit of Sec 44AD, subject to fulfillment of conditions of Sec44AD.

 


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