Compounding charges calculation prescribes aggregating tax sought to be evaded with consolidated establishment expenses for first offence. Compute tax and surcharges on concealed firm income at the maximum marginal rate (A). Compute tax on allocable profit in partners' hands, with surcharge (B). Total tax sought to be evaded is C = A + B. Add consolidated establishment expenses to C to obtain total compounding charges, which are recoverable for the first offence.
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Compounding charges calculation prescribes aggregating tax sought to be evaded with consolidated establishment expenses for first offence.
Compute tax and surcharges on concealed firm income at the maximum marginal rate (A). Compute tax on allocable profit in partners' hands, with surcharge (B). Total tax sought to be evaded is C = A + B. Add consolidated establishment expenses to C to obtain total compounding charges, which are recoverable for the first offence.
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