24 May 2011
The words sales, turnover and gross receipts are commercial terms and they should be construed in accordance with the method of accounting regularly employed by the assessee. If the sales tax collected is credited separately to sales tax account and payments thereof are debited in the same account, they would not be included in turn over. Courtesy :- ICAI Publication "Issues on Tax Audit".
06 June 2011
I think sales should be considered for tax audit as per income tax act definition and as per income tax act sale should be inclusive of taxes
CAclubindia
