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

This query is : Resolved

Querist : Anonymous

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

VISHRUT

VISHRUT (Expert)
Follow

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/- )

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2011 Thanks for the reply

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

bhavesh

Srikanthan S

rana andcompany

Pranab Banerjee

Gurunathan kannan

Subscribe Now

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

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

CA Final

Senior Executive

Manager- Finance and Compliance

Accountant

GST CONSULTANCY