20 March 2008
What is the meaning of turnover in case of tax audit. 1) In case of person carry on bussiness if his turnover or sales or gross receipts exceeds Rs.40,00,000.
Now, my questions is, 1)What is meaning of gross receipts in this criteria ( other than in case of profession.) 2)What is meaning of turnover/sales i.e.what to include in sales amount.
Suppose, sales bill is like this Net Amount 10,000.oo Excise (16%) 1,600.00 Cess 48.oo Vat(4%) 465.00 Total 12,114.00
then what amount will be included.
3)Whether sale of scrap , Fixed assets will be considered for this purpose.
24 March 2010
As per Guidance note on Tax Audit Issued by the ICAI 1. For Defination of T/O i would suggest you to refer the Guidance note itself. 2.For your sepcific question :- The same will depend on the methof of accounting; inclusive or exclusive as followed by the assesee. i.e if he is booking VAT and Excise seperately in entry (Exclusive method), in that case vat/ excise will not form the part of the t/O. Thus 10000 will be T/O if exclusive method 12114 will be the T/o if Inclusive method 3. sale of the Fixed asset is not in the nature of the regular nature of the busines hence will not form part of the Turnover. However the Scrap sale will form part of the Turnover.
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