Turnover

Tax queries 6049 views 14 replies

 whether service tax recoverd for providing service will form part of turnover  in the income tax

Replies (14)

IF RECEIPT IS RECORDED INCLUSIVE OF SERVICE TAX IN THE BOOKS THAN YES.

Service Tax  should not be  includ with turnover.

Service tax recovered is liability to deposit in the department so it can not be part of turnover.

Service Tax never forms part of turnover. It is statutory liability.

No,Service tax is not a part of turnover..

turnover should be shown in accounts net of service tax

Example Sale 2000000(Inclusive of service tax 200000)

then in accounts the turnover should be shown 1800000(2000000-200000)

ok

Originally posted by : vikas aggarwal

turnover should be shown in accounts net of service tax

Example Sale 2000000(Inclusive of service tax 200000)

then in accounts the turnover should be shown 1800000(2000000-200000)

ok

 Agreed

Service tax is a liablity, recd from customer for payment to govt.

Therefore it do not amount to part of turnover i.e not included in turnover

yes i favour and appreciated all of these answer.

SERVICE TAX & TURNOVER ARE DIFFRENTLY SHOWN FOR GETTING SERVICE TAX CREDIT.

Following entry is passed for booking:

Party A/c Dr.

     To Income from services(e.g. Brokerage) A/c

     To Service tax payable A/c

Hence Service tax is not included in turnover.

Ek dum sahi Jawab.

AMIT

If Service Tax is never a part of turnover/income then why should TDS be deducted on amount which is inclusive of service tax except for rent????

HI 

Service tax is part of turnover

in that case  there will be difference in the income shown in 26 as in which income is inclusive of service tax and income shown in income tax return ( which is exclusive of service tax)

but excise duty is part of turnover as defined in the turnover for the limit )0f 60 lakhs



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