Section 44AD

While calculating Income under section 44AD, Turnover to be taken inclusive of GST or exclusive of GST?
Replies (3)

1. Sec 145A which specifies the method of accounting to be employed for the purpose of determining PGBP. 
2. According to sec 145A, Turnover also includes taxes, duty, cess or fee. According to Income Tax profit to be reported for IT should include any tax, duty, cess, and fee. 
3. So in my sense, GST should form part of Turnover in order to determine the applicability of sec 44AD. 
Please correct me if the above interpretation has an alternative view. 

Under Sec 44AD , assessee is not supposed to maintain books of accounts . Hence there is no question of method employed by the assessee for computing income under PGBP. what turnover under sec 44AD to be shown at the time of ITR filing ?

1. Sure there is no need to maintain Books of accounts and any specific method to be followed. But for the purpose of T.O as per IT, sec 145A prescribes to include Tax as a part of its T.O to show under PGBP. 
2. Barring sec 145A IT requires Turnover to be shown fully, that is including Tax with respect to PGBP income.  I have answered your query based on this proposition. However, I think there is no separate definition explaining Turnover for the purpose of sec 44AD. But we can also see it in an angle where there is no explanation for T.O specifically for sec 44AD. Hence, T.O could be excluding taxes.
Please correct me if the above interpretation has an alternative view. 

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