Turnover for Sec,44AB

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This query is : Resolved

Krishna Mohan (Querist)

20 December 2010 One of my client has tunover of 37 lacs excluding VAT of Rs.4 lacs totalling 41 lacs. For Sec.44AB shall i consider turnover excluding VAT or including VAT?

CA Sanat Pyne

CA Sanat Pyne (Expert)

20 December 2010 It depends upon the treatment of sales invoices u are doing in ur books.If u r regularly crediting the Sales Tax in Separate Account, bill wose then Turnover will be excluding of Sales Tax, but if you are not transferring Sales Tax in a separate Account, then it would be taken by including Sales Tax.You may also refer the guidance note on Tax Audit U/s 44AB issued by ICAI.However, for saferside or to avoid the litigations, it is advisable to include the Sale tax in both the cases.

Krishna Mohan

Krishna Mohan (Querist)

20 December 2010 Sales tax need to be included in invoices as it will entail the purchaser to take VAT credit. So, even in my books, if i show it as separate ledger, it may not reconcile with physical invoices raised.

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