An assessee has an agency of milk. What will be his gross receipts - the total receipts he receives from sale of milk packets or the margin between his purchase and sales?
The Assessee's Gross Receipts will be the Margin on the sale of Milk Packets.
Regards,
Devendra K
Fuly agreedwit abov eviews
margin on sale of milk
it is like the retail business..we should take the income from selling the packets and margin on it as gross receipts..
For Presumptive taxation in the income tax act, we take the gross receipts means all receipts taking from the related business activity.
In your case we take the sale of milk packets
If u not satisfy with my answer u can contact to Income Tax customer care for reconfirmation
Thank you
Regards
Manav Goel
i m totally agree with manav.
in case of presumtive taxation under section 44AD gross reciepts means reciepts out of sale of goods
so, in your case gross rrcpts will be sale of milk packets
i think it should total receipts from sale of packets. If we take only margin here, then why not take margin in other trading activities also??
I am still not confirmed. There are two views. Whether to take sale of packets or the margin as gross receipts?
i am also in same view ...
that gross receipts will include sale of milk packets ...nt margin receipts
hi.
i agree with manav . gross receipts is the total receipts from the business.
the margin between sales and purchase would be gross profit and not gross receipts.
in 44AD we will take 8% of total sale receipts as presumtive Income.
Hope its clear now.
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