Estimated Income under Sectn. 44AD
This query is : Resolved
13 July 2011
TURNOVER UNDER SECTN. 44AD.
From A.Y. 11/12 the profit shall be estimated at 8% of TURNOVER where total TURNOVER or GROSS RECEIPTS do not exceed Rs.60 lakhs during a year.
Question.
Does TURNOVER or GROSS RECEIPTS to be construed as Sales or as Sales+VAT ?
Thanks,
Jamshed F. Mehta
From A.Y. 11/12 the profit shall be estimated at 8% of TURNOVER where total TURNOVER or GROSS RECEIPTS do not exceed Rs.60 lakhs during a year.
Question.
Does TURNOVER or GROSS RECEIPTS to be construed as Sales or as Sales+VAT ?
Thanks,
Jamshed F. Mehta
13 July 2011
It depends upon the method of accounting regularly employed by you. If you are recording sales on net basis and recording the Vat A/c separately, you may take the Gros receipts at the sales amount.
The safest approach, however, is to consider Sales+Vat both. I recommend to adopt this figure only. As any thing deducted from Gross Sales is not gross sales. That is Gross sales net off Vat.
The safest approach, however, is to consider Sales+Vat both. I recommend to adopt this figure only. As any thing deducted from Gross Sales is not gross sales. That is Gross sales net off Vat.
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