Are taxes included for computing turnover u/s 44ad

Do we include Indirect Taxes like VAT, Service Tax etc for the purpose of computing Turnover under Section 44AD?

Replies (7)
Taxes are not to be included in turnover. They are current liabilities to be remitted to the tax authorities.

Yes.                           

Assume that Whether Assesse is a Compostion Dealer under MVAT Act. so the Same amt should be Incorporate for Presumtive Taxation under Income Tax Act.

If sales tax and excise duty are included in the sale price, no adjustment in respect thereof should be made for considering the quantum of turnover.

If however, the excise duty or sales tax recovered are credited separately to Excise duty or sales tax a/c [being separate accounts] and payment to the authority are debited in the same account, they would not be included in the turnover.

[Source - GN of ICAI]

Here the query is specifically related to Turnover as related to section 44AD.

As per section 44AD:: Total Turnover / Gross Receipts are amount received/receivable from clients in respect of sale of Previous Year.

What are the receipts which forms Part of Turnover?

1) Sales Tax, excise duty, Cess, and other Levy.

2) Sales of unusables empties and Packages.

3) Service Charges charged for delivery

Then what are the Receipts which does not form Part of Turnover?

1) Sale of Property, Plant and equipments

2) Advance received from customers, deposits Received or retention money.

3) Any Security, retention or other deposit obtained from employees.

4) Interest Income or other similar receipts

5) Value of Inventory

@ Saurabh Sahu: Yes

Agree with your explanations but section 44AD does not defines the Total Turnover / Gross Receipts

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
21 August 2026
Finance Manager

Resollect Technologies Pvt Ltd

Mumbai

CA

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
18 August 2026
Audit Assistant - Remote / Work From Home

CA ANOOP P K & ASSOCIATES

Kozhikode

CA Inter

View Details
Company
14 August 2026
Semi Qualified

Goyanka & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details