21 January 2024
As per my view Debit Note will be included here.
According to section 2(91) of Companies Act 2013 as amended by the Companies (Amendment) Act, 2017
"Turnover" means the gross amount of revenue recognised in the profit and loss account from the sale, supply, or distribution of goods or on account of services rendered, or both, by a company during a financial year.
The GST law also do not define the term turnover. However, the Central Sales Tax Act, 1956 defined the term turnover as
“Turnover” used in relation to any dealer liable to tax under this Act means the aggregate of the sale prices received and receivable by him in respect of sales of any goods in the course of inter-State trade or commerce made during any prescribed period and determined in accordance with the provisions of the Act and rules made there under.
The term ‘turnover’ for the purposes s. 44AB would mean the aggregate amount for which sales are affected or services rendered by an enterprise. The following should not be deducted from sales to arrive at turnover: Inclusions (Not to be deducted from Turnover) 1. Sale of scrap/ By product 2. Sales proceeds of shares, securities, debentures etc. held as stock in trade by the assessee. 3. Cash discount other than allowed in invoice 4. Commission on sales 5. If sales tax/ Excise duty was included in sale price while accounting (Inclusive method), then the same shall form part of Turnover. Exclusions (To be deducted from Turnover) 1. If sales tax/ Excise duty was not included in sale price while accounting (Exclusive method), then the same shall not form part of Turnover. 2. Sale proceeds of Fixed Assets. 3. Sale proceeds of Investment property. 4. Sale proceeds of shares, securities, debentures held as an Investment. 5. Discounts allowed in the Invoice. 6. Turnover discount (even if allowed by way of separate credit note) 7. Ancillary charges such as packing, freight and forwarding etc. provided they are separately mentioned in the Invoice. Otherwise they will form part of Turnover. 8. Sales Returns 9. Price adjustments. 10. Special rebate (Excluding commission on sales)
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