Total turnover

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Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2013 Whether VAT Collected is a part of turnover for the purpose of Section 44AD and Section 44AB?
Suppose a Business Man has a turnover of Rs - 95,00,000/- and he have collected Rs 10,00,000/- as VAT. Whether the provisions of 44AB is applicable on him?

Again Suppose a Business Man has a turnover of Rs - 50,00,000/- and he have collected Rs 5,00,000/- as VAT. Whether he wll have to take his gross turnover as 50,00,000/- or 55,00,000/- for the purpose of Sec- 44AD?

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Gaurav Garg

Gaurav Garg (Expert)
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29 October 2013 Firstly amount of vat is not taken as a part of sale because output vat collected from customer is not a income of assessee , it is a income of state govt and therefore it is shown on liabilities side or assets side as the case maybe , it is not part of sale

Therefore assessee is not liable for tax audit

Secondly as per finance act 2012 section 44AD has amended now ab assessee can file return under section 44AD if its turnover is less than 1 crore and not 60 lakhs

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Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2013 Thank you Mr. Gaurav Garg. The last part of my question is stil incomplite. Whether the said businessman will calculate his Total turnover as 50,00,000/- or 55,00,000/- for the purpose of Section 44AD.

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