Service Tax/VAT not to be considered for recognizing revenue under AS7

Veolia India Pvt. Ltd. Vs DCIT (ITAT Delhi) Ground- Learned CIT(A) has erred in considering amounts aggregating to Rs.26,839,975 towards Value Added Tax and Service Tax included in the customer’s work order as constituting part of construction contract value for the purposes of recognizing revenue under AS7. The CBDT Circular No. 4/2008 dated 04.04.2008 clarified that service tax doesn’t partake the nature of income. The Circular was issued while dealing with Section 194-I. Since, the sum and substance of the circular is that the service tax doesn’t form a part of the income of the a...