My client is providing technical consultancy services.
His total Consultancy fee is 45 lacs (net of Service tax),
Now tax audit is applicable, whether i have to show consultancy fee amount at gross ( including service tax ) in income & expenditure A/c or net amount?
1(A)-Sales/ Gross receipts of business (net of returns and refunds and duty or tax, if any, Under (ii) Sale of Services
Then Show Service Tax amount in 1(B)Duties, taxes and cess, received or receivable, in respect of goods and services sold or supplied, under (ii) Service Tax.
Then again show service tax in -36 Rates and taxes, paid or payable to Government or any local body (excluding taxes on income)