whether turnover includes value added tax

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Milan Amlani (Querist)

10 December 2010 I would like to know that for the purpose of Vat audit limit of 1 crore of turnover,
is it required to include the figure of vat in sales for the calculation the threshold limit of 1 crore for vat audit

Vishal Kakkad

Vishal Kakkad (Expert)

11 December 2010 Dear Milanji

Provide the name of state for which you have raised the query

Milan Amlani

Milan Amlani (Querist)

11 December 2010 the state is gujarat, whether turnover limit of 1 crore should be inclusive of value added tax or should be exclusive. for vat audit

Vishal Kakkad

Vishal Kakkad (Expert)

12 December 2010 Turnover of Sales not to be included Value Added Tax

However it should include
1) Excise Duty
2) Customs
3) Any other charges like freight, labour added in the invoice

Sales return if any need to be deducted from gross turnover.

As per Sec. 63 audit report to be obtained if total turnover exceeds Rs. 1 crore. In my opinion Total Turnover means either of Purchase Turnover or Sales Turnover. Hence if even turnover of purchase exceeds Rs. 1 Crore than also audit report to be obtained.

Milan Amlani

Milan Amlani (Querist)

14 December 2010 Mr. Vishal,

thanks for your answer

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