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Definition of total turnover

Nupur Sharma (CA) (426 Points)

26 November 2008

Please tell me the exact definition of Total Turnover as per Section 80HHC. Is it the gross turnover or the sale proceeds actually received?

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4 Replies

CA Sunny Sharma (Service) (234 Points)
Replied 26 November 2008

Yes it means total sales proceeds recieved by assesee & it should not include nay kind of taxes like VAT etc ( as decided in case of Bharat earth movers case )

Why do you need it as this section is no more applicable now after A/Y 05-06 and hence i do not think it can be asked in exams also......

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CA Sunny Sharma (Service) (234 Points)
Replied 26 November 2008

Yes it means total sales proceeds recieved by assesee & it should not include nay kind of taxes like VAT etc ( as decided in case of Bharat earth movers case )

Why do you need it as this section is no more applicable now after A/Y 05-06 and hence i do not think it can be asked in exams also......

Nupur Sharma (CA) (426 Points)
Replied 26 November 2008

Originally posted by :Nupur
"	Please tell me the exact definition of Total Turnover as per Section 80HHC. Is it the gross turnover or the sale proceeds actually received?	"

Yes i know that its not applicable any more, but i need it in respect of a case pending with the CA firm where i am undergoin training.

Are you sure that 'total turnover' means the sale proceeds actually received and not 'receivable'?? The word has not been clearly defined anywhere in the Act.

CA Sunny Sharma (Service) (234 Points)
Replied 26 November 2008

Ye si am sure because as per explanation to Sec 80HHC 4C:Export turnover means the sales proceeds (recieved in or brought in to India) by assesee in converted foreign exchange.

Point to be noted that words Sales proceeds has been subsituted for Recievable by finance act 1991. Means earlier there was Recievable word was used here.