term sale or turnover

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NITIN

NITIN (Querist)
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19 March 2010 For audit U/s 44AB the term sales or gross turnover means including all taxes or vat or only sale amount

jainendra

jainendra (Expert)
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19 March 2010 The answer is in affirmation law says in section 44AB

BUSINESS=GROSS RECEIPTS OR TOTAL SALES > 4000000

PROFESSION=GROSS RECEIPTS > 1000000
GROSS HERE MEANS INCLUSIVE OF TAXES,MARGINS,MARK-UPs,ETC.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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19 March 2010 agree

CA Gangadhar Mishra

CA Gangadhar Mishra (Expert)
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19 March 2010 It depends on method of accounting you are maintaining, say, if your invoices clearly shows the sales, taxes separately & you are showing taxes as current liabilities, then your turnover means only sales value excluding taxes, but if your sales invoices are raised not showing separately the sales & taxes amt.then your turnover will be the total amt. inclusive of taxes which is credited to P L a/c. then 44 ab is applicable if turnover exceeds 40 lacs.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 March 2010 Partially in agreement with Ganadhar Sir. For the view of our Institute, please refer page 8 of "Issues on Tax Audit" (June 2000 edition) an ICAI publication.

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