section 44 AB
This query is : Open
15 July 2017
Please share meaning of Turnover for the purpose of section 44AB Will it include VAT.
15 July 2017
Turnover is the aggregate amount for which sales are affected or services are rendered by an enterprise.
Not to be deducted:
1. Cash discount otherwise than that allowed in a cash memo/sales invoice is in the nature of a financing charge and is not related to turnover. The same should not be deducted from the figure of turnover.
2. If sales tax and excise duty are included in the sale price while accounting, then Turnover shall include these taxes.
3. Scrap Sales shall form part of Turnover.
To be deducted:
1. Trade discounts (i.e. Discount shown in Sales Invoice) can be deducted from sales but not the commission allowed to third parties
2. Turnover discount is normally allowed to a customer if the sales made to him exceed a particular quantity. This being dependent on the turnover, as per trade practice, it is in the nature of trade discount and should be deducted from the figure of turnover even if the same is allowed at periodical intervals by separate credit notes.
3. If the Excise duty and/or sales tax recovered are credited separately to Excise duty or Sales tax Account (being separate accounts) and payments to the authority are debited in the same account, they would not be included in the turnover.
4. Sales Returns
5. Sale proceeds of any shares, securities, debentures, etc., held as investment
6. Sale proceeds of property held as investment property
7. Sale proceeds of fixed assets
Not to be deducted:
1. Cash discount otherwise than that allowed in a cash memo/sales invoice is in the nature of a financing charge and is not related to turnover. The same should not be deducted from the figure of turnover.
2. If sales tax and excise duty are included in the sale price while accounting, then Turnover shall include these taxes.
3. Scrap Sales shall form part of Turnover.
To be deducted:
1. Trade discounts (i.e. Discount shown in Sales Invoice) can be deducted from sales but not the commission allowed to third parties
2. Turnover discount is normally allowed to a customer if the sales made to him exceed a particular quantity. This being dependent on the turnover, as per trade practice, it is in the nature of trade discount and should be deducted from the figure of turnover even if the same is allowed at periodical intervals by separate credit notes.
3. If the Excise duty and/or sales tax recovered are credited separately to Excise duty or Sales tax Account (being separate accounts) and payments to the authority are debited in the same account, they would not be included in the turnover.
4. Sales Returns
5. Sale proceeds of any shares, securities, debentures, etc., held as investment
6. Sale proceeds of property held as investment property
7. Sale proceeds of fixed assets
Message likes :
1 times
15 July 2017
Thanks a lot
Message likes :
1 times
15 July 2017
Welcome......
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR selection for salaries and capital gain less than L
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Treatment of Pension ?annuity returns on PMVY
- Soyabean hsn code and gst rate
- Regarding IMS Mandatory from 1st July 2026
- One Post a Week Done Right Beats Seven Done Wrong
- Interest on SCSS
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
