Assess is a work contractor. His gross turnover inclued Labour and Material Charges which he shows as a JOB WORK Receipt under Profit and Loss Account. However, He required to collect VAT on the bills raised by him.
His Turnover is Rs. 5993749.50
VAT on above Rs. 44734.00
Total Rs. 6038483.50
Please advised me which amount to be consider for Turnover under the Income Tax act, whether it is inclusive of VAT or exclusive of VAT i.e., Net amount.
And please also advise me about sec 145(1) of income tax act and please clarify me.
Thanks
CAclubindia
