Presumtive tax u/s.44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2012 My client has a turnover of Rs. 46,97,408/-.
This figure also contains VAT & Service tax of Rs.5,88,767/-.Now for the purpose of Calculating presumtive tax @8% on turnover the sales should be net Rs.41,08,641/- or Rs.46,97,408/
Please clarify

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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27 May 2012 For calculating Presumptive Income the phrase " Total Turnover or Gross Receipts" in reference to a business has been used in Section 44AD. Considering the same 46,97,408/- has to be considered as Total turnover.

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Please refer the following link also -

http://taxguru.in/income-tax-case-laws/service-tax-will-be-included-in-turnover-for-the-calculation-of-presumptive-profit.html

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