gross receipts , sales, turnover under sec 44 AB

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This query is : Resolved

Balasubramaniyam Sundaram Iyer (Querist)

19 July 2009 whether sales tax collected in respect of sales made has to be included in the "total gross sales, turnover, gros receipts" for determing the treshold limits of Rs.40 lakhs for audit purpose

MANISH MITTAL

MANISH MITTAL (Expert)

19 July 2009 yes

Jitender

Jitender (Expert)

19 July 2009 yes, it will be included.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)

20 July 2009 It depends upon the System of Accounting being followed by the Assessee. In case the assessee does not include Sales Tax in the Sales/ Turnover then the limit for Section 44AB will be analysed in view of the sales booked excluding the Sales Tax.

However, there is requirement of Section 145A of the Income Tax Act to account for Sales, Turnover etc at gross figures so as to include Sales Tax, Excise etc.

Balasubramaniyam Sundaram Iyer

Balasubramaniyam Sundaram Iyer (Querist)

20 July 2009 thank you or your views on the subject

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