Budding CA
107 Points
Joined April 2012
It will be noted that the provision relating to tax audit applies to every
person carrying on business, if his total sales, turnover or gross receipts in
business exceed the prescribed limit (Rs.1 crore w.e.f. A.Y. 2013-14)
What is Gross Receipt?
In the case of a travelling agent, the amount received from the clients
for payment to the airlines, railways etc. where such amounts are
received by way of reimbursement of expenses incurred on behalf of
the client. If, however, the travel agent is conducting a package tour
and charges a consolidated sum for transportation, boarding and
lodging and other facilities, then the amount received from the
members of group tour should form part of gross receipts;