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Urgent pls: does t/o include incentive & free supply goods?

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Querist : Anonymous

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Querist : Anonymous (Querist)
21 September 2011 Dear Experts

"Does Turnover include the INCENTIVE/ UPFRONT SCHEME GOODS?????

Please reply with reference to Sec. 44AD (Presumptive Taxation).

Please calculate the Tax liability w.r.t given below example presuming assessee wish to opt Sec. 44AD

1. Sales Rs. 15.10 Lacs
2. Incentives & upfront Goods recd. Rs.
1.40 Lacs (Not included in above Sales)

So basically the question is "whether 8% will be calculate on Rs. 15.10 Lacs or on Rs. 16.50 Lacs i.e 15.10 + 1.40 Lacs"???

If it is to be calculate only on Rs. 15.10 Lacs, then what will be the treatment of Rs. 1.40 Lacs????? Can we claim expenditure from that Income????

Pls reply soon

Thanking you
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VISHRUT

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VISHRUT (Expert)
21 September 2011 Yes turnover will include all incentive scheme.

The tax liability will be on profit of Rs. 1,32,000/- ( Tax:- Rs. 40,788/- )
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Querist : Anonymous

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Querist : Anonymous (Querist)
21 September 2011 Thanks for the reply
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