| DCIT vs. Mitchell Drilling International Pty. Ltd (ITAT Delhi) |
| S. 44BB is a special provision, treating 10% of the aggregate amount specified in sub-s. (2) of s. 44BB as deemed profits and gains of the non-resident. The amount referred in sub-s. (2) of s. 44BB are the amounts (a) paid to the assessee (whether in or out of India) on account of the provision of services and facilities in connection with, or supply of plant and machinery on higher used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India … etc. Service-tax is a statutory liability like custom duty and reimbursement of custom duty & service-tax paid by the assessee cannot form part of amount for the purpose of deemed profits u/s 44BB as oit does not involve any element of profit. Accordingly, it cannot be included in the total receipts for determining the presumptive income. |
Thursday 20 September 2012
Service tax is not part of “Gross Receipts” for purposes of s. 44BB
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2 comments:
if my gross receipt was 14 lacs and service tax 2 lacs and total receipt 16 lacs.i m professional whether tax audit appicable for a.y 2012-13.
if my gross receipt was 16 lacs its included 2 lacs service tax so its applicable tax audit foe a.y 2012-13,if i m professional
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