DEPB - Mercantile or Actual, Central Excise

[VIRENDER PANDEY]

Whether amount of Duty Drawback recd. during the Financial Year will be included in the Gross Turnover for the purposes Tax Audit under the Income Tax Act? And Whether the DEPB is also to be recorded on mercantile basis or should be recorded only when recd. in actual?

Posts / Replies

[Rama Krishana]

DEPB is a business income and falling under section 28. Therefore, it is the part of gross turnvover for the purpose of tax audit u/s 44AB.