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.....!!!!
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
kk...bt do i have to mention it in any report...4 d disclosure....???? just for the sake of nt d CA fault...
n if i disallow that amount...den the income goes less than 15 lacs...n den no audit required...wat say???
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)
thanx a lot.....
If the Service Tax amount is disallowed, the business / profession profit shall increase, there is no question of decrease in Turnover.
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