Gross turnover u/s 44ad

What is the reason for including VAT/Sales Tax in computing Total Turnover u/s 44AD?

Replies (2)

VAT/Sales Tax/ED/Service Tax etc ( or whatever taxes and levies) which are collected at the time of sale of goods or services are included in computing the amount of turnover under 44AD/AB as they are also part of trading receipts.

 VAT/Sales Tax(other leavies) are collected and remitted to the concerned authorities. But when we include the above in the Turnover to calculate 8% profit under Sec.44AD of the Act, its just like we are computing our profit even on the VAT/Sales Tax which are not an income to us. Why???????

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