How is gross turnover calculated

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Querist : Anonymous

Querist : Anonymous (Querist)

27 February 2011 As the limit is now 60 lakhs.If some proprietor have purchase of less than 60 lakhs but closing stock and net profit brings the total to above 60 lakhs does it lead to tax audit.

In sense does purchase include closing stock of last year and taxes like vat and profit at 10% on purchase to be part of gross turnover?

Ram Avtar Singh

Ram Avtar Singh (Expert)

27 February 2011 Section 145A of the Income Tax Act,1961 states that purchase , sale and inventory shall be valued by taking into account the amount of any tax, duty, cess or fee

Turnover meens "sales Turnover" VAT or excise duty and other income, service provided should also be considered for purpose determining the criteria for getting accounts audited u/s 44AB of the I T Act.
you can deduct sales return from Sales turnover.

Querist : Anonymous

Querist : Anonymous (Querist)

27 February 2011 SO vat included.

Also i read somewhere even if purchase surpasses audit limit(60 lakhs) account needs to be audited(as gross receipts is consider as purchase).Is that true .

But what about past year closing stock and assumed profit in balance-sheet.Or only sales decides tax audit stuff?

Sorry if i didn't frame the question properly as i am not a student but the person part of the query.

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