Meaning of turnover fro the purpose of section 44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2012 whether income of trade/cash discount on purchase is added in sales while calculating 8% profit of turnover for the purpose of section 44AD.

CA Kusum Sorathia

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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07 May 2012 Trade discount is not recorded in the books of account itself.
As regards to Cash discount, it is not a receipt of business. it is just a concession from creditors against purchases. So discount is not included in the turnover for 44AD.