Tax Audit
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 July 2010
Whether purchase is counted in "sales, turnover & gross recipts" as per income tax act for determing 40 lakhs limit?
what is the definition of "Turnover" as per income tax act? does it include purchase also?
what is the definition of "Turnover" as per income tax act? does it include purchase also?
30 July 2010
No purchase is not counted.
A person is required to get his accounts audited u/s 44AB if turnover of business exceeds Rs 40 Lakhs(60 lacs from fy 2010-11), or In case of Profession Gross Receipts exceed Rs 10 Lakhs(15 Lacs from fy 2010-11)
In the “Guidance Note on Terms used in Financial Statements” published by ICAI, “the expression “Sales Turnover” has been defined as: “The aggregate amount for which sales are effected or services rendered by an enterprises. The term ‘gross turnover/sales’ and ‘net turnover/sales’ are sometimes used to distinguish the sales aggregate before and after deduction of returns and trade discounts”
A person is required to get his accounts audited u/s 44AB if turnover of business exceeds Rs 40 Lakhs(60 lacs from fy 2010-11), or In case of Profession Gross Receipts exceed Rs 10 Lakhs(15 Lacs from fy 2010-11)
In the “Guidance Note on Terms used in Financial Statements” published by ICAI, “the expression “Sales Turnover” has been defined as: “The aggregate amount for which sales are effected or services rendered by an enterprises. The term ‘gross turnover/sales’ and ‘net turnover/sales’ are sometimes used to distinguish the sales aggregate before and after deduction of returns and trade discounts”
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
- CAPITAL GAIN REDEVELOPED FLAT
- Multiple payment of self assessment tax for A Y 2025-2026
- Requirement under FEMA &RBI
- REGARDING ITR FILING QUESTION
- CLOSING STOCK QUERY
- GST ISD Query on various AMCs
- DUE DATE FOR ITR FILING
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- Old Traces Portal
- ITC BENEFIT ON BROKRAGE PAID
- GST REGISTRATION REQUIRED TO DIAGNOSTIC UNIT
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
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
