Meaning of Turnover for sec 44AD

whether gst charged on sales will be includible for calculation of total sales for sec 44AD
Replies (10)

No, if separately accounted. But yes for composition dealers.

No, GST shall not be included to calculate turnover under Income tax
The term gross receipts / turnover is not defined by the Income. tax act 1961 .
If Assessee will file presumptive taxation scheme (44AD / 44ADA) then GST Tax amount also include in Turn Over Value...

Turnover as per Sec 44AD implies "Gross revenue receipts from sale of goods and services". So, turnover is inclusive of GST.

Originally posted by : Kalyani
Turnover as per Sec 44AD implies "Gross revenue receipts from sale of goods and services". So, turnover is inclusive of GST.

nice mam

Thank you so much
As you said that gross receipts mean whatever we received from the sale of good and service but if we include GST on gross receipt then it's 8% will going to be part of total income U/S 44AD. As we know GST is collected and paid by the supplier as an agent. Gst is not the income of supplier so its inclusion in turnover means its 8 % portion will be treated as income which is not justified,

If you are regular dealer under GST, your turnover under GST will be exclusive of GST; so, same you can declare under ITR.

Please Note the underlined words - 

“Turnover” means the gross amount of revenue recognized in the profit and loss account from the sale, supply, or distribution of goods or on account of services rendered, or both, by a person during a financial year.

It Means amount which is reflecting in your Profit & Loss A/c and Gross means all type of revenues. Like Service Recipt, Trading Recipt etc.

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