Applicability of sec 44 ab
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 August 2013
I am dealing the accounts of person who is trading cement .his sales are RS. 9927024.
and he also earned the following disccounts from the purchaser
1.quantity disccount RS.206247
2.general disccount Rs.397680
3.additional disccount Rs.122288
4.cash disscount Rs.7520
5.Plant sale disccount Rs.1400
6.PPC disccount Rs.122410
can we inclued the above mentioned disccounts in the turnover, if yes please suggest me what are to be included in the turnover.
Regards
M.Chowdeswara Reddy
and he also earned the following disccounts from the purchaser
1.quantity disccount RS.206247
2.general disccount Rs.397680
3.additional disccount Rs.122288
4.cash disscount Rs.7520
5.Plant sale disccount Rs.1400
6.PPC disccount Rs.122410
can we inclued the above mentioned disccounts in the turnover, if yes please suggest me what are to be included in the turnover.
Regards
M.Chowdeswara Reddy
01 August 2013
No.
In the “Guidance Note on Terms used in Financial Statements” published by ICAI, “the expression “Sales Turnover” has been defined as: “The aggregate amount for which sales are effected or services rendered by an enterprises.
You can rely on the above definition and can exclude all the six types of discount received for the purpoe of arriving turnover for 44AB audit.
In nut shell, tax audit is not mandatory for the referred assessee.
In the “Guidance Note on Terms used in Financial Statements” published by ICAI, “the expression “Sales Turnover” has been defined as: “The aggregate amount for which sales are effected or services rendered by an enterprises.
You can rely on the above definition and can exclude all the six types of discount received for the purpoe of arriving turnover for 44AB audit.
In nut shell, tax audit is not mandatory for the referred assessee.
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