29 October 2010
our firm angaged in sugar commission agent business during the f.y 2007-2008 we raised commission bill of Rs. 3677383 servoce tax Rs. 441330 and cess&SHE Rs. 13074.5 total Rs. 4131787.5 we not deducted tds from our sub broker to whom we pay commission due to law of turnover below 40 lacs but during the scrutiny of Income tax I.T officer including commussion+S.tax+Ecess & SHE in turnover and liable us to deducted tds and impose a huge tax liabilty upon us add the expenses to our income on which tds to be deduct around 20 lacs while comm figure is 3677383 without service tax . now we want your suggestion how to challange the I.Tax officer through appeal and also suggest us some cases like us and their order result
The AO is right, the turnover includes indirect taxes for tax audit purposes. To save you what you need to do is to pay TDS in current year & claim the expenses in current year.
I suggest not to go to appeal relating to this matter, for other matters you can go the appeal.
CAclubindia
