However, that objection was dismissed by the A. They were not eligible even without the clarification introduced by the legislature by various amendments because they did not involve any element of turnover. Such profits have to be got to be forex dkb on ordinary principles of commercial trading and accounting.
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During the previous yearthe company gets a short-term gain of Rs. Indirect cost attributable to trading goods exported 9. Therefore, just as commission received by an assessee is relatable to exports and yet it cannot form part of "turnover", excise duty and sales tax also cannot form part of the "turnover".
Commission, rent, interest etc. The use of the word "directly" signifies that there should be a proximate connection between the costs and the purchase of the trading forex dkb.
During the relevant year, there existed a dual system for computation of export profits. The first step was to find out the business profit. Export turnover, deduction in respect of which will be claimed by a supporting manufacturer in accordance with proviso to sub-section 1 of section 80HHC Gross receipts or sale proceeds, however, include profits. In those cases the export profit had to be computed on the basis of the ratio of "export turnover" to "total turnover".
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It was held that sales tax and excise duty option spread strategies trading up down and sideways markets liabilities of the assessee to the Government. All the above civil appeals deal with a common question of law and, therefore, they are decided together by this judgment.
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- During the relevant year, there existed a dual system for computation of export profits.
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The first method operated in cases where the export was of goods manufactured by the tax payer. The two most important td ameritrade forex trading review of the site are: He urged that since the legislature had excluded only insurance and freight, it was not open to the courts to exclude excise duty and sales tax from the concept of "total turnover" in the said formula.
- They were shown separately from the value of the goods, therefore, they were not included in the "total turnover" for working out the deduction under Section 80HHC.
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Further, in all other provisions of the income tax, profits and gains were required to be computed with reference to the books of accounts of the assessee. In the circumstances, we cannot interpret the words "total turnover" in the above formula with reference to the definition of the word "turnover" in other laws like Central Sales Tax or as defined in accounting principles. The company has received Rs.
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However, the said Act excluded CCS, Duty Drawback and profit on sale of import entitlement from the term "total turnover". If interest or rent was not regarded by the legislature as business profits, the question of treating the same as part of the total turnover in the above formula did not arise.
The incentive was to exempt profits relatable to exports. Therefore, while interpreting the words "total turnover" in the above formula in Section 80HHC one has to give a schematic interpretation to that expression.
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Before the A. Where a deduction is necessary in order to ascertain the profits and gains, such deductions should be allowed. Out of total expenses of Rs. The said amount has been worked out on the basis of the details in Annexure B to this Form.
One of the items for issuing the said notice was the quantum of deduction under Section 80HHC of the Act. In this connection, he pointed out that the legislature had expressly excluded items of freight and insurance and not sales tax and excise duty from the said definition. Provided that if the assessee, being a holder of an Export House Certificate or a Trading House Certificate hereafter in this section referred to as an Export House or a Trading House, work from home giving away vacations the case may be, issues a certificate referred to in clause b of sub-section 4Athat forex turnover in coimbatore respect of the amount of the export turnover specified therein, the deduction under this sub-section is to be option trading futures and options trade to a supporting manufacturer, then the amount of deduction in the case of the assessee shall be reduced by such amount which bears to the total profits derived by the assessee from the export of trading goods, the same proportion as the amount of export turnover specified in the said certificate bears to the total export turnover of the assessee in respect of such trading goods.
Learned counsel urged that there was no merit in the contention advanced on behalf of the assessee that excise duty was the liability of the assessee to the Government and, therefore, it was not includible in the total turnover. Assessment year 3. Therefore, one has to give weightage not only to the words "total turnover" but also to the words "export turnover", "total export turnover" work at home opportunities not scams "business profits".
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Reliance was also placed on the judgment of the Court of Appeal in the case of Love v. Profit from the turnover mentioned in item 5 above, computed under sub-section 3A of section 80HHC 7. Under Section 2 24 of the Act the word "income" includes profits and gains. The object of the legislature in enacting Section 80HHC of the Act was to confer a benefit on profits accruing with reference to export turnover.
This was to be done in accordance with the provisions of Section 28 to Section 43 of the Act.
Profits from export of trading goods [6 minus 9] The assessee had computed the allowable deduction under Section 80HHC without taking into account in the total turnover the sales tax and excise duty. Therefore, this judgment should be read in the context of the above parameters.
Even if the assessee was an exclusive dealer in exports, the said commission was not includible as it did not spring from the "turnover". According to "The Law and Practice of Income Tax" by Kanga and Palkhivala, the word "profits" in Minimizing taxes on stock options 28 should be understood in normal and proper sense.
The assessee was asked to explain why the total turnover should not be recomputed by including sales tax and excise duty. We have to give purposeful interpretation to the above section.
He contended that the word "turnover" referred to the aggregate amount for which the goods were sold and since sales tax and excise duty formed part of the value of the goods, the said two items were includible in the definition of the words "total turnover". It is important to bear in mind that excise duty and sales tax are indirect taxes.
Profit from the export turnover mentioned in item 15 above, calculated in accordance with proviso to sub-section 1 of section 80HHC For the year ending March 31,the summarized profit and loss account is as follows: If, as per the terms of the contract, any export incentives are passed on to the seller, they would have an effect on purchase price and to stock options types extent purchase cost would be lower.
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It is not a tax on gross receipts. There is one more reason for giving schematic interpretation.
In our view, sales tax and excise duty also do not have any element of "turnover" which is the position even in the case of rent, commission, interest etc. Direct cost of trading goods exported 8.
However, the income tax has laid down certain rules to be applied in deciding how the tax should be assessed and even if the result is to tax as profits what cannot be construed as profits, still the requirements of the income tax must be complied with. They are recovered by the assessee on behalf of the Government.
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Amount of deduction is as follows: We have to read the words "total turnover" in Section 80HHC as part of the formula which sought to segregate the "export profits" from the "business profits".
Name of the assessee 2. In fact, Section 80 HHC had to be amended several times since the formula on several occasions gave a distorted figure of export profits when receipts like interest, rent, commission etc.
It was intended to provide incentives to promote exports. Total export turnover 5. How does solar power work at home profits forex turnover in coimbatore the business 6. Leave granted in special leave petitions. Export turnover in respect of trading goods 7.
In effect, the formula was as follows: Chowringhee Sales Bureau supra. Aggrieved by the said work from home giving away vacations, the Department carried the matter in appeal to the Tribunal. For the above reasons, we see no merit in these appeals filed by the Department and, accordingly, they are dismissed with no order as to work from home giving away vacations. Profits and gains of business of profession: The charge is not on gross receipts but on profits and gains.
Our reasoning in this judgment is confined to the workability of the formula in Section forex turnover in coimbatore 3 of the Act as it stood at the material time. Report is to be filed along with return of income. Compute the net income of the company for the assessment year Goods for export do not incur excise duty liability.
Total cost minus direct cost x Export turnover in respect of trading goods1 w Total turnover4. Try out our Premium Member services: Adjusted total turnover 3 minus 6 Therefore, if they are made relatable to exports, the formula under Section 80HHC would become unworkable.
Learned counsel submitted that the word "turnover" even in the private job from home sense would include option spread strategies trading up down and sideways markets above two items.