Service tax liability cannot be determined based on mere P&L A/c

Firm Foundations Vs Principal Commissioner (Madras High Court) The petitioner is, admittedly, recognizing revenue under the ‘Project Completion Method’ in terms of AS-7 issued by ICAI. We need not, in the present case, concern ourselves with the method followed for the preparation of financials as the same has no impact upon the Point of Taxation Rules (POTR). Suffice it to state that the AS provides a certain methodology for the computation of income from projects that is at variance with the method set out under Rule 3. Insofar as Rule 3 sets out a specific modus operandi in this...