EXCISE, ST NOT PART OF REVENUE FOR I-T PURPOSES

In a significant relief to exporters, the Supreme Court has ruled that excise duty and Sales Tax (ST) cannot form part of total turnover while computing deduction under section 80 HHC of the Income-Tax Act, 1961. The ruling will help exporters claim deduction in respect of larger share of their business income as profit earned from export and would thus reduce their tax liability, wherever the above issue is pending in litigation.