Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Turnover for nbfc

Tax queries 3092 views 1 replies

Pawan Mittal

CA Final

711 Points Joined July 2012

Dear Experts What is the definition of turnover from the point of view of Non Banking Finance Company(NBFC) for the purpose of determination of requirement of Tax audit u/s 44AB?

i.e. Whether the loans and advances given by the NBFC will be considered as turnover or the interest received by it will be considered as turnover for the purposes of Tax audit u/s 44AB?

One NBFC has loans and advances of Rs. 1.5 crore and the interest received thereon for the year is Rs. 20 lacs. Now whether NBFC is liable to get its accounts audited u/s 44AB?

Thanks in advance

Replies (1)

DINESH SAGGAR

Student CA Final

23 Points Joined May 2015

Dear Pawan,

In GST the Aggregate turnover includes aggregate value of all supply , whether it is a taxable supply, exempt supply, export, inter state supply or Non taxable supply.

Although loan is just like money which is not covered under goods or services, is exempt from gst taxability or you can say it is non taxable.

In my opinion the Loan amount disbursed by NBFC should be well covered in the definition of aggregate turnover as Non taxable supply.

Regards,

Dinesh Saggar

CA Final Student