11 May 2015
A hospital is running under Partnership. It has hired doctors and other staff and offers wards, treatment, medicine and other facilities.
I want to ask whether to book all its earning into Direct Income or under Sales Revenue. And is there any difference in both the heads "Direct Income" and "Sales"?
11 May 2015
It can be booked under Direct income. Sales is for trading of Goods. VAT is applicable on sales. For income tax not a problem if it is booked under sales or direct income.
11 May 2015
Thanks. So for Pharmacy we can book under Sales as we pay VAT on Pharmacy Sales and rest all kind of earnings to be booked under Direct Income.