Defination of turnover for tax audit limit (urgen)
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 September 2011
Dear Sir,
A clients turnover is Rs.55 lacs for the FY 2010-2011 and he had shown profit of Rs.4.42 lacs just above 8% of turnover (as shown in the profit and loss account).
-He charged Rs.5.50 lacs Excise duty/sales tax on sales, whether this amount will be added in turnover calculation (as per section 145A of the Income Tax Act) or not.My query is as follows
a) He adjusted Excise Duty/sales tax of Rs.4 lacs through Input credit and paid Rs.1.50 lacs through cash.
b) He paid Rs.5.50 lacs Excise Duty/sales tax in cash.
c) Tax Audit is compulsory or not (if we add Rs.5.50 lacs Excise Duty/sales tax in turnover for calculation purposes only total turnover will be Rs.60.50 lacs)
Kindly give me reply on urgent basis.
Thanks
A clients turnover is Rs.55 lacs for the FY 2010-2011 and he had shown profit of Rs.4.42 lacs just above 8% of turnover (as shown in the profit and loss account).
-He charged Rs.5.50 lacs Excise duty/sales tax on sales, whether this amount will be added in turnover calculation (as per section 145A of the Income Tax Act) or not.My query is as follows
a) He adjusted Excise Duty/sales tax of Rs.4 lacs through Input credit and paid Rs.1.50 lacs through cash.
b) He paid Rs.5.50 lacs Excise Duty/sales tax in cash.
c) Tax Audit is compulsory or not (if we add Rs.5.50 lacs Excise Duty/sales tax in turnover for calculation purposes only total turnover will be Rs.60.50 lacs)
Kindly give me reply on urgent basis.
Thanks
18 September 2011
If excise duty & sales tax is separately accounted in the books of account then the same will not be considered as turnover.
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