Will the O/Put tax billed and recovered from customer will form part of turnover for calculation of 100 Lakhs w.r.t Sec. 44ab.
Let suppose in a case where basic sales amount to 90 Lakhs and it totals to 110Lakhs after adding VAT will the assessee be rquired to get audited u/s 44ab??
Sales Tax, VAT or excise duties collected should not be taken into account for turnover if they are credited seperately to sales tax, VAT or excise duty account.
But sir, as guidance note is not mandaory on the entity.
And, sec 145 evidently states that Purchase and sale of goods be valued inclusive of tax.
So, shouldn't there be a close refrence drawn from the act itself rather than guidance note.
| Originally posted by : Aamir | ||
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Turnover Exclusive of tax to be considered as o'er Guidance Note and Section 44AB. Bciz wgen you fill ITR 4 P&L A/c Sakes Net if Taxes to be filled and considered for Turnover Kimit u/s 44AB. |  |
Dear aamir though I second your views.
But, format of ITR can't be used for interpretation of law.
ITR forms are designed for administrative convenience and increased clearity secondly, If we go by your logic in that case why do we add Indirect taxes for sec. 44ad.
So in my opinion you might be correct but this can't be an explanation to it.
We are still getting varied responses couldn't form a conclusion. 
Chandan & Mohit sir though I am getting this very answer from most of the CAs but none of them is substantiating this view with any legal base.
So, could you please tell me the legal basis for your opinions plz.
| Originally posted by : Raj C Doshi | ||
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Can someone go through Guidance Note on the same. | |
1st reply to the topic is the extract from guidance note only.
But, since guidance note is not mandatory on any entity neither IT deptt confers it and Sec 145 states something entirely different from what our guidance note says.
Thats why I m confused.
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