INCOME TAX ACT, 1961

Section 44BB

Presumptive taxation under section 44BB - Amount of service tax being statutory levy, received by assessee - Calculation of amount referred to in sub-section (2) of section 44BB -

Issue arose for consideration as to whether Tribunal erred in law in holding that amount of service tax amounting being statutory levy, received by assessee from its customers was to be included in calculating the aggregate amount referred to in sub-section (2) of section 44BB. Held: Substantial question of law was answered in DIT International Taxation v. Schlumberger Asia Services Ltd. (2019) 414 ITR 1 (Uttarakhand) : 2019 TaxPub(DT) 2320 (Uttarakhand-HC) in favour of the assessee by holding that the amount reimbursed to assessee by service recipient, representing the service tax paid earlier by assessee to the Government of India, would not form part of the aggregate amount referred to in clauses (a) and (b) of sub-section (2) of section 44BB.

Followed:Director of Income Tax International Taxation v. Schlumberger Asia Services Ltd. (2019) 414 ITR 1 (Uttarakhand) : 2019 TaxPub(DT) 2320 (Uttarakhand-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

SUBSCRIBE FOR FULL CONTENT