Turnover for tax audit

First you have to know this. You are collecting the Output Sales tax and Service Tax money from your Customer / Service Receiver on behalf of the Statutory Department. Its a kind of liability, you have to pay / adjust with the Statatuory pre payments made like Input Sales tax paid / Service tax Input. So You are not eligible declared those collected amount as your income or include in your turn over. 

So you can calculate the Turnover ommitting the statutory payments collected / Raised.

Dear all

I think Output tax & Service tax is not of part of Income. So can't added in Turnover in any bussiness.

Thanks & Regard

Ramanuj

it`s true that it cannot become the part of turnover but you cannot say that it is a balance sheet item.  you have two option

1. With the route of profit and loss account
2. With the route of balance sheet as explained by mr maharaj 

Yes, Out put vat will be included into sales as well as Input vat will be included into purchase for determination of ciling limit of tax audit.