Do we include Indirect Taxes like VAT, Service Tax etc for the purpose of computing Turnover under Section 44AD?
Neha sharma (-) (1257 Points)
17 January 2017Do we include Indirect Taxes like VAT, Service Tax etc for the purpose of computing Turnover under Section 44AD?
Suresh Pai S
(Tax Consultant)
(1029 Points)
Replied 17 January 2017
saurabh shahu
(Audit Assistant)
(142 Points)
Replied 17 January 2017
Assume that Whether Assesse is a Compostion Dealer under MVAT Act. so the Same amt should be Incorporate for Presumtive Taxation under Income Tax Act.
Koushik D C
(Proprietor/Freelancer)
(938 Points)
Replied 17 January 2017
If sales tax and excise duty are included in the sale price, no adjustment in respect thereof should be made for considering the quantum of turnover.
If however, the excise duty or sales tax recovered are credited separately to Excise duty or sales tax a/c [being separate accounts] and payment to the authority are debited in the same account, they would not be included in the turnover.
[Source - GN of ICAI]
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160322 Points)
Replied 17 January 2017
Here the query is specifically related to Turnover as related to section 44AD.
Koushik D C
(Proprietor/Freelancer)
(938 Points)
Replied 17 January 2017
Agree with your explanations but section 44AD does not defines the Total Turnover / Gross Receipts
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