Taxation of Presumptive income u/s 44AD
This query is : Resolved
19 March 2020
Sir,
There may be good reason but not made known that why law makers leave some very important terms undefined while drafting and passing of ITax law. e.g term ' Total Turnover' on which percentage for business income is to be applied to find out presumptive business income.
Now 'Total Turnover' is not defined with any relevant definition in section 44AD. One is left to his own research and collaboration and conclusions to find himself on right or wrong side of fence.
To find a simple answer of query that whether Term ' Total Turnover' includes GST or Excludes GST..to estimate presumptive business income u/s 44AD
Please facilitate to clarify this issue.
There may be good reason but not made known that why law makers leave some very important terms undefined while drafting and passing of ITax law. e.g term ' Total Turnover' on which percentage for business income is to be applied to find out presumptive business income.
Now 'Total Turnover' is not defined with any relevant definition in section 44AD. One is left to his own research and collaboration and conclusions to find himself on right or wrong side of fence.
To find a simple answer of query that whether Term ' Total Turnover' includes GST or Excludes GST..to estimate presumptive business income u/s 44AD
Please facilitate to clarify this issue.
19 March 2020
GST is not form part of total turnover..
It's just liability.Collecting and paying.
19 March 2020
You may use sales ledger directly
20 March 2020
I appreciate quick reply. and Thanks for that.
Can I make request to CA .R Seetharaman also to have his valued opinion .
Can I make request to CA .R Seetharaman also to have his valued opinion .
25 May 2020
If You are opting for presumptive scheme u/s 44AD then GST shall be added in Turnover. But if If You will go for regular scheme u/s 44AA then GST shall not be added to Turnover.
What are the receipts which forms Part of Turnover?
1) Sales Tax, excise duty, Cess, and other Levy.
2) Sales of unusables empties and Packages.
3) Service Charges charged for delivery
Then what are the Receipts which does not form Part of Turnover?
1) Sale of Property, Plant and equipments
2) Advance received from customers, deposits Received or retention money.
3) Any Security, retention or other deposit obtained from employees.
4) Interest Income or other similar receipts
5) Value of Inventory
Who bears the onus of proof to prove the turnover?
The onus of proof is on the assessee. It is his duty to prove the turnover. If the assessee is maintaining the books of accounts, then it will be easy for him to prove the same, but if he is not maintaining the books of accounts, then it will be very difficult for him to prove, because there is no specific provision for the same.
What documents you should provide to the AO to prove the turnover?
– copies of invoices issued during the PY
– copies of cash memo
– copies of Purchase bill
– Bank statement
– Inventory details, if any maintained
– Average G.P rate applicable to Particular business
– Returns filed under sales tax/vat/excise/service Tax laws.
What are the receipts which forms Part of Turnover?
1) Sales Tax, excise duty, Cess, and other Levy.
2) Sales of unusables empties and Packages.
3) Service Charges charged for delivery
Then what are the Receipts which does not form Part of Turnover?
1) Sale of Property, Plant and equipments
2) Advance received from customers, deposits Received or retention money.
3) Any Security, retention or other deposit obtained from employees.
4) Interest Income or other similar receipts
5) Value of Inventory
Who bears the onus of proof to prove the turnover?
The onus of proof is on the assessee. It is his duty to prove the turnover. If the assessee is maintaining the books of accounts, then it will be easy for him to prove the same, but if he is not maintaining the books of accounts, then it will be very difficult for him to prove, because there is no specific provision for the same.
What documents you should provide to the AO to prove the turnover?
– copies of invoices issued during the PY
– copies of cash memo
– copies of Purchase bill
– Bank statement
– Inventory details, if any maintained
– Average G.P rate applicable to Particular business
– Returns filed under sales tax/vat/excise/service Tax laws.
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