Servicos De Petroleo Constellation SA · ITAT Mumbai on §44BB: GST and service tax stay out of presumptive turnover
Is GST included in 'turnover' for §44BB presumptive profits?
No. GST and service tax, collected on behalf of the government, are excluded from sales turnover for §44BB computation.
Facts in brief
- §44BB provides a special method for computing profits from exploration activities; the dispute was whether GST/service tax collections enter the turnover base.
Issue before the bench
Whether statutory levies collected for the government form part of §44BB receipts.
Held
Only receipts in the nature of income are taxed; GST and service tax are excluded, consistent with the Uttarakhand High Court in Vantage International Management (following the Full Bench in Schlumberger Asia Services), with the SLP against it dismissed by the Supreme Court.
Practitioner takeaway
Strip statutory levies out of any presumptive-scheme turnover computation and cite the settled line; the SLP dismissal makes the position durable.
More on this topic: Assessment & appeals: characterisation, deductions and appellate practice · Need this drafted? Appeals Drafting for CA Firms: CIT(A) and ITAT