Turnover for Sec,44AB

This query is : Resolved

Krishna Mohan (Querist)
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20 December 2010 One of my client has tunover of 37 lacs excluding VAT of Rs.4 lacs totalling 41 lacs. For Sec.44AB shall i consider turnover excluding VAT or including VAT?

CA Sanat Pyne

CA Sanat Pyne (Expert)
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20 December 2010 It depends upon the treatment of sales invoices u are doing in ur books.If u r regularly crediting the Sales Tax in Separate Account, bill wose then Turnover will be excluding of Sales Tax, but if you are not transferring Sales Tax in a separate Account, then it would be taken by including Sales Tax.You may also refer the guidance note on Tax Audit U/s 44AB issued by ICAI.However, for saferside or to avoid the litigations, it is advisable to include the Sale tax in both the cases.

Krishna Mohan

Krishna Mohan (Querist)
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20 December 2010 Sales tax need to be included in invoices as it will entail the purchaser to take VAT credit. So, even in my books, if i show it as separate ledger, it may not reconcile with physical invoices raised.

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