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
28 March 2013
So Many are having same doubt in this regards.
If you charging and collecting service tax amount separately in your bill and accounting separetly for service tax then service tax amount shall be excluded for th purpose of turnover otherwise it shall be considered for turnover.
For example: If your invoice/bill format is as follows
Contract amount or charges XXXX
Add: Service tax XXX
Total XXXX
And your accounting is as follows
Mr.X(contractee) To contract fee a/c To service tax a/c
Then you need not to consider service tax for turnover purpose. In case you fail to do any one of the above or both then you have to consider service tax for turnover purpose.
If however, the service tax recovered are credited separately to service tax (being separate accounts) and payments to the authority are debited in the same account, they would not be included in the turnover.
if No Separate Account for Service Tax The Its to be Included.
28 March 2013
The term `turnover' would mean the total sales after deducting therefrom goods returned, price adjustments, trade discount and cancellation of bills for the period of audit, if any. Adjustments which do not relate to turnover should not be made e.g. writing off bad debts,royalty etc. Where excise duty is included in turnover, the corresponding amount should be distinctly shown as a debit item in the profit and loss account.”
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