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Meaning of Turnover for sec 44AD

Raj Chaurasia (273 Points)

24 March 2019

whether gst charged on sales will be includible for calculation of total sales for sec 44AD

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10 Replies

Achyut Mhatre (Owner) (275 Points)
Replied 24 March 2019

No, if separately accounted. But yes for composition dealers.

3 Like

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Sahil Jain (FAFD, DISA, CA) (Practicing Chartered Accountant ) (2476 Points)
Replied 24 March 2019

No, GST shall not be included to calculate turnover under Income tax

prasad Nilugal (3914 Points)
Replied 24 March 2019

The term gross receipts / turnover is not defined by the Income. tax act 1961 .

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 24 March 2019

If Assessee will file presumptive taxation scheme (44AD / 44ADA) then GST Tax amount also include in Turn Over Value...

Kalyani (Chartered Accountant) (181 Points)
Replied 24 March 2019

Turnover as per Sec 44AD implies "Gross revenue receipts from sale of goods and services". So, turnover is inclusive of GST.

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venkata krishna reddy (chartered accountant) (792 Points)
Replied 25 March 2019

Originally posted by : Kalyani
	Turnover as per Sec 44AD implies "Gross revenue receipts from sale of goods and services". So, turnover is inclusive of GST.

nice mam

Kalyani (Chartered Accountant) (181 Points)
Replied 29 March 2019

Thank you so much

bikash (STUDENT) (22 Points)
Replied 10 June 2019

As you said that gross receipts mean whatever we received from the sale of good and service but if we include GST on gross receipt then it's 8% will going to be part of total income U/S 44AD. As we know GST is collected and paid by the supplier as an agent. Gst is not the income of supplier so its inclusion in turnover means its 8 % portion will be treated as income which is not justified,

Fenil Jetpara (self) (316 Points)
Replied 10 June 2019

If you are regular dealer under GST, your turnover under GST will be exclusive of GST; so, same you can declare under ITR.

1 Like

Karan Kapoor (Student) (32 Points)
Replied 02 November 2023

Please Note the underlined words -

“Turnover” means the gross amount of revenue recognized in the profit and loss account from the sale, supply, or distribution of goods or on account of services rendered, or both, by a person during a financial year.

It Means amount which is reflecting in your Profit & Loss A/c and Gross means all type of revenues. Like Service Recipt, Trading Recipt etc.