16 June 2010
In this case please note that if any amount is collected from the parties and kept in the liability side of the balance sheet and was not paid upto the time of filing of Income Tax Return then can the AO add the service tax receipt as a revenue receipt.
16 June 2010
IF YOU HAVE RECEIVED SERVICE TAX FROM THE PARTY AND NOT DEPOSITED WITH IN THE DATE OF FILING OF IT RETURN AND A.O. WILL ADD THE SAME AMOUNT AS DISALLOWANCE OF UNPAID LIABILITY UNDER SECTION 43B
16 June 2010
I got a case law in your favour which could help u and correspondingly my answer will change
Where the assessee maintaining mercantile system of accounting collected service tax but did not deposit a portion thereof to Government account, but had neither debited the amount to the profit and loss account as an expenditure nor had claimed any deduction in respect of the amount, the question of disallowing any amount under section 43B would not arise - CIT v. Noble & Hewitt (I) (P.) Ltd. [2008] 166 Taxman 48 (Delhi).
16 June 2010
Can the AO add the service tax received from parties and deposited with the Service Tax Department as income??? If yes under which section????
16 June 2010
No Aditya I am trying to say that if i have collected say Rs. 100 bt way of service tax from the clients and has paid Rs. 20 to the government and rest i have kepy it with me and further also not deposited within the last date of filing of return then whether the Rs. 80 which i have collected and not paid can be added to my income
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