Turn over

DVat 552 views 1 replies

Dear All, 

  What is  turnover means? Does it mean Gross turnover or Net turnover? Does it include VAT, CST, Excise Duty or not ?

Thanks in Advance

 

Replies (1)
Turnover
 
CST Act defines turnover [s.2(j)] as follows:

"Turnover used in relation to any dealer liable to tax under this Act means the aggregate of the sale prices received and receivable by him in respect of sales of any goods in the course of inter State trade or commerce made during any prescribed period and determined in accordance with the provisions of this Act and the rules made thereunder ".

State laws follow the definition with various inclusions and exclusions. Broad details are contained in the following paragraphs.
For the Levy/ calculation of limits the relevant concepts as may have been defined are:
  1. Turnover
  2. Total Turnover
  3. Taxable Turnover
Turnover means aggregate sale price or purchase price of goods sold/purchased.
In case of works contract, Turnover could be:
  1. Purchase price of goods used
  2. Contract price less deductions for services and other charges
  3. Contract price.
Sale price/Purchase price defined to mean:
  1. consideration for goods
  2. charges for doing something to goods at/before delivery
  3. Adjusted for:
    • Exclusion of insurance, freight, installation cost as charged
    • Trade discounts, returns etc.
    • Such other items as may be /have been specified.
Total Turnover means aggregate turnover of all goods whether exempt or otherwise.

Taxable Turnover - turnover on which tax is payable – computed as per:
  1. Adjustments specified
  2. Adjustments permissible.
Specified Adjustments could include:
  1. Returns
  2. Discounts
  3. Exempt items
  4. Inter-State sales
  5. Imports and exports
  6. Resales Others.
Permissible Adjustments :
  1. As per generally accepted practices
  2. As may be laid down in Rules etc.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register