Service Tax allowabilty
This query is : Resolved
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
UNDER WHICH SECTION?
16 June 2010
I HAVE MODIFIED MY ANSWAR. PLEASE CHECK IT.
16 June 2010
but i have never claimed the same as an expenditure in my books of account
16 June 2010
The same will be disallowable u/s 43B
16 June 2010
If the expense is never claimed in the accounts than how the same can be disallowed????
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).
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
You have mentioned in ur query first that service tax is not paid and being added which is not possible as per above case law.
So if u have not paid service tax it cannot be added then how service tax that has been paid can be added?
So if u have not paid service tax it cannot be added then how service tax that has been paid can be added?
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
16 June 2010
read the case law. It will sovle ur purpose.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Is online PGCE worth it?
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
