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."
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....
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.
CAclubindia
