Gross turnover



Dear All

Can u help me regarding the reporting of sales in Pvt Ltd Company. 

The management of the company wants to report the turnover in the financial statements to the gross turnover i.e. inclusive of all indirect taxes.

Is it possible?? Further till now the company was reporting the turnover to the net i.e. exclusinve of all indirect taxes. 

Also pls tell the implication under Income Tax act and Companies Act.

 
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CA

Gross turnover is without taxes. So, if you don't follow this. You'll be doing non-compliance to accounting standards.

For income tax, turnover is with taxes.

 
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Can u quote under which standard is it ???????

 

 
Reply   
 
CA

AS 9, Guidance note on tax audit u/s 44AB and Guidance note on terms used in financial statements.
 
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