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Urgent query

Avik Nandi (Article Assisstant) (45 Points)

01 August 2011

hi...i m an article in a firm...filing up a incometax return of a client...she has a consultancy services of arnd 16lacs...so she is liable to pay service tax on that...but she has not complied with it...now as a CA...doing a tax audit...wat ol disclosures i need to make in the documents...please...reply to my query...in a detailed manner.....!!!!

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6 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 01 August 2011

First of all you will have to calculate the Service Tax to be paid by the assessee and disallow the same while arriving at the Income earned from Business. But if the same is paid by the assessee before filing the Income Tax Return, then there is no need to disallow the service tax amount.

Regards,
Devendra K

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Avik Nandi (Article Assisstant) (45 Points)
Replied 02 August 2011

kk...bt do i have to mention it in any report...4 d disclosure....???? just for the sake of nt d CA fault...

Avik Nandi (Article Assisstant) (45 Points)
Replied 02 August 2011

n if i disallow that amount...den the income goes less than 15 lacs...n den no audit required...wat say???

Devendra (Chartered Accountant) (4775 Points)
Replied 02 August 2011

I think so you can report such non-compliance in Form 3CA (AUDIT REPORT UNDER SECTION 44AB OF THE INCOME- TAX ACT, 1961 IN A CASE WHERE THE ACCOUNTS OF THE BUSINESS or Profession OF A PERSON HAVE BEEN AUDITED UNDER ANY OTHER LAW)