Section 44ad

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2012 Dear sir,
A dealer having Sales of 58 lacs during FY 2010-11, charging VAT on sales @5% in Tax-invoices in explicit manner, which comes to 290000/-.
My query is that, whether the said dealer can opt Sec. 44AD
or he has to opt audit before return filing?
Please advise me.

CA Himanshu Sharma

CA Himanshu Sharma (Expert)

26 February 2012 according IT ACT turnover means gross turnover.
which includes vat also.

i think i resolved ur query.....

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

26 February 2012 If the VAT amount considers separately in the invoice i.e vat charges addition to the value in the bill then not included in the gross turnover other wise it includes in gross turnover. As per the definition to the gross turnover all the charges which separately not considered in the invoice includes in gross turnover i.e. VAT,fright charges,other taxes,other charges etc.... if charged in invoice in addition to the goods value then not treated as turnover otherwise turnover. I think in your case VAT collected amount not includes in Gross Turnover because you collecting it in addition to the value of sales in the invoice. I am sure about my decision because i face it and get clarification in one of my client case. However if you not satisfied wait for some other decision.
OM SAI SRI SAI JAI JAI SAI

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