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Income Tax Section 44AB

Sivakumar N (Services) (106 Points)

08 May 2008

Who is a person to whom Income Tax Section 44AB applies in India and the provisions thereof.

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6 Replies

CA Hemant T Dewani (Chartered Accountant) (3356 Points)
Replied 08 May 2008

any person whose gross sales/turnover is in excess of rs.40 lakhs & profession whose gross receipt is in excess of rs 10 lakhs are liable to u/s 44AB of income tax act for tax audit

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Santhoshini .S (student) (37 Points)
Replied 10 May 2008

pl tel whether gross receipts include service tax?? however service tax credit is taken. pl reply as early as possible.

Sivakumar N (Services) (106 Points)
Replied 22 May 2008

Do you have a link to the e-docment that provides the ACTUAL legal draft of this IT Section 44AB, to review the same- Thanks again.

M.M.SURANA (Director -Taxation ) (532 Points)
Replied 06 April 2009

Ms. Santhoshini

In my opininion Servicetax will not be included for the purpose of Sec. 44AB, U r collecting servicetax on behalf of Govt. of India. Unless until U pay or set off It will show as a liability in your Balance Sheet. Hence it not forming part of Gross Receipts.

Surana,Chennai

9952967237

M.M.SURANA (Director -Taxation ) (532 Points)
Replied 06 April 2009

Mr. Sivakumar

U can go to website of incometaxindia.gov.in and can download from Acts & rules

Surana, Chennai

9952967237

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CA RAMESH KUMAR AHUJA (CA, DISA, LLB) (5452 Points)
Replied 08 April 2009

Originally posted by :Santhoshini .S
"	pl tel whether gross receipts include service tax?? however service tax credit is taken. pl reply as early as possible.	"

It depends on the system of accounting followed by the assessee. If receipts are accounted for with gross figures including the amount of service tax then Gross Receipts will include the amount of Service Tax also otherwise not. Also, Section 145A of the Income Tax Act provides that the sales or receipts etc should be booked with gross figures.