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Including vat or excluding vat

YELLANKI RATHNAGIRI (Tax Consultant) (294 Points)

11 September 2016

Dear all i want to file my it return u/s44ad because i did not maintain books of account here turnover = only sales or turnover = sales+taxes (like vat & cst) or turnover = sales+taxes+other receipts in bank please give reply

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3 Replies

Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 11 September 2016

SIR

I DO NOT UNDERSTAND YOUR QUARRY

PLZ CLEARFIY ONCE AGAINST WITH EXAMPLE

Ashok J (CA Final) (880 Points)
Replied 11 September 2016

turnover includes vat st cst excise duty

mohammad rasool baig (Management Consultant) (1026 Points)
Replied 12 September 2016

Turnover is the aggregate amount for which sales are affected or services are rendered by an enterprise.

Not to be deducted:

1. Cash discount otherwise than that allowed in a cash memo/sales invoice is in the nature of a financing charge and is not related to turnover. The same should not be deducted from the figure of turnover.

2. If sales tax and excise duty are included in the sale price while accounting, then Turnover shall include these taxes.

3. Scrap Sales shall form part of Turnover.

To be deducted:

1. Trade discounts (i.e. Discount is shown in Sales Invoice) can be deducted from sales but not the commission allowed to third parties

2. Turnover discount is normally allowed to a customer if the sales made to him exceed a particular quantity. This being dependent on the turnover, as per trade practice, it is in the nature of trade discount and should be deducted from the figure of turnover even if the same is allowed at periodical intervals by separate credit notes.

3. If the Excise duty and/or sales tax recovered are credited separately to Excise duty or Sales tax Account (being separate accounts) and payments to the authority are debited in the same account, they would not be included in the turnover.

4. Sales Returns

5. Sale proceeds of any shares, securities, debentures, etc., held as investment

6. Sale proceeds of property held as investment property

7. Sale proceeds of fixed assets

Follow the link - https://www.simpletaxindia.net/2015/08/tax-audit-us-44ab-sales-turnover-or.H T M L#axzz4K1DTBo00