shashant (shashant) (31 Points)
24 August 2020
CA Amrita Chattopadhyay
(Audit & Assurance)
(13134 Points)
Replied 24 August 2020
From your query, it is understood that the FD are done for the purpose of investment and not for the purpose of business. Thus, it will not form part of the Turnover. Further, CBDT Circular No.4/2007, dated: 15-6-2007-Appendix II (Page no.
217) may also be referred to.
Also, The term "gross receipts" is also not defined in the Act. It will include all receipts whether in cash or in kind arising from carrying on of the business which will normally be assessable as business income under the Act.
RINKU JAIN
(CA in Practice (CA CS CMA MBA(F) B.Com))
(46 Points)
Replied 24 August 2020
GROSS RECEIPTS
Gross Receipts would include all receipts whether in cash or in kind arising from carrying on of the business which will normally be assessable as business income under the Act.
2.1 Inclusions (To be included):
1. Sale proceeds of scrap, wastage etc. if it is included in sale or turnover
2. Advance received and forfeited from customers
3. Cash assistance under the scheme of Government
4. Liquidated damages
5. Duty Drawbacks
6. Export incentives
7. Insurance claim(except relating to fixed assets)
8. Profit on sale of import license
9. Foreign exchange fluctuations on export sales
10. Interest income (if it forms part of business income)
11. Dividend income (in case of dealer of shares and securities)
12. Commission, brokerage, service and other incidental charges received in the business of chit funds
13. Reimbursement of expenses incurred (if credited to separate account then only to the extent of surplus)
14. Hire charges and instalments received
15. Finance income in case of lessor
16. Gross receipts including lease rent in the business of operating lease
17. Hire charges of cold storage
2.2 Exclusions (Not to be included):
1. Sale proceeds of asset held as investment.
2. Interest income (if not included as business income)
3. Dividend income except in case of dealer in shares
4. Reimbursements of custom duty and other charges collected by clearing agent
5. Share of profit of a partner of a firm/LLP excluded from total income u/s10(2A)
6. Liabilities/ provisions of creditors, expenses or taxes written back
7. Rental income (if not included as business income)
8. Reimbursement of advertising charges by an advertising agent from the client
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