What is the definition of turnover of sales/purchases under the MVAT act? Is the amount of VAT charged on sales is to be included in the turnover of sales?
The gross sales in case of one of the dealer is around 41.28 lakhs which includes the net amount as well as the VAT/CST amount on such sales. The net sales excluding VAT/CST amount comes to around 39.37 lakhs. Please suggest me whether the dealer is under MVAT audit or not?
As per the Act when the Turnover (sales) exceeds Rs.40/- lacs that company will be liable for MVAT Audit.
The turn over is always only the basic product value both Purchase or Sales since the duties & taxes you are acting as an agent to the Govt. Collecting from your cusomer & paying to the Govt.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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