Tax audit limit
This query is : Resolved
21 July 2014
Tax audit limit for proffesionals is Rs 25 lakhs.
If the actual fees is Rs 23 lakhs and Service tax is Rs 2.5 lakhs, then the total billed amount is Rs ( 25.5 lakhs)
In the above scenario will tax audit be applicable??
If the actual fees is Rs 23 lakhs and Service tax is Rs 2.5 lakhs, then the total billed amount is Rs ( 25.5 lakhs)
In the above scenario will tax audit be applicable??
21 July 2014
yes as servie tax alos need to be taken into account as per guidance note on tax audit u/s 44AB.
Message likes :
1 times
21 July 2014
no turnover dosent include service tax.so tax audit is not applicable as only turnover is considered for tax audit limits.
Message likes :
1 times
21 July 2014
no turnover dosent include service tax.so tax audit is not applicable as only turnover is considered for tax audit limits.
21 July 2014
will have to agree with Parul ji. service tax needs to be excluded.
Message likes :
1 times
21 July 2014
will have to agree with Parul ji. service tax needs to be excluded.
21 July 2014
will have to agree with Parul ji. service tax needs to be excluded.
21 July 2014
pls refer to definition of gross recepits nikhil.
21 July 2014
it doesnt include service tax......
21 July 2014
then what is the meaning of the word "gross"
21 July 2014
Refer Page 35 of the Guidance note of tax audits. Para 5.7 last line:
"If, however, the Excise duty an / or sales tax recovered are credited separately to Excise duty or Sales tax Account (being separate accounts) and payments to the authority are debited in the same account, they would not be included in the turnover."
"If, however, the Excise duty an / or sales tax recovered are credited separately to Excise duty or Sales tax Account (being separate accounts) and payments to the authority are debited in the same account, they would not be included in the turnover."
21 July 2014
where does it speaks about service tax in ur reply it says abt excise and sales tax.
21 July 2014
when it doesnt include service tax but includes excise and sales tax then by principle of negative analogy gross reciepts includes service tax in my opinion.
21 July 2014
Mr.tushar service tax is not your income and for the purpose of tax audit turnover is considered only. ICAI clarifies it by giving an example of excise duty and sales tax that exclude it.Just think why it is excluded because turnover is the main thing.So service tax also is not considered.
Dont go just by words......try to have the idea of interpretation and logics....
Dont go just by words......try to have the idea of interpretation and logics....
21 July 2014
then many professionals will be out of tax audit is that was the logic so i think u must give some logical suppporting rather then asking me to apply logic.
21 July 2014
going by the same analogy, the whole guidance note or income tax act no where talks about service tax. plus, income tax department through itds circular 1/2014 has already clarified that TDS is not to be deducted on service tax amount. More a reason to claim that service is not supposed to form part of turnover. if you want to do literal interpretation or not, is your wish.
21 July 2014
going by the same analogy, the whole guidance note or income tax act no where talks about service tax. plus, income tax department through itds circular 1/2014 has already clarified that TDS is not to be deducted on service tax amount. More a reason to claim that service is not supposed to form part of turnover. if you want to do literal interpretation or not, is your wish.
21 July 2014
tds and circular no 1/2014 are diff issue and pls do not mix it with applicability of tax audit in case of service tax to be counted in gross receipts for applicability u/s 44AB.
21 July 2014
well I already gave the reason. The sales tax takes form of service tax in case of services. apply the logic friend. ICAI guidance note reference has been given above. You can refer to it. Further more, once sales tax and service tax are consumed into GST, they will all be equated anyways. so literal interpretation will work there.
21 July 2014
Mr.tushar i am giving you the logic of not considering the service tax on the same paralance of excise and sales tax.Its upto you what you want to interpret.anyways assume what you want to assume.
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
- Inventory of finished goods
- Tds on building rent monthly
- Sale of property furniture sale
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- RCM INVOICING FROM NOV-2024
- Confusion around Form 26QB fields
- GST Regis.
- Disallowance of Section 43B(h) to sez units
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
