Sir, could you please clarify me one doubt. One of my clients made a turnover of 90,03,270 as per GST. but in bank account only 78,97,846.
Now my doubt is whether can i show 6% on 78,97,846. Because we can follow cash basis of accounting as per income tax act. Even if there is difference between GST turnover and income tax turnover I think income tax won't send us any notice because I am going everything as per law.
Is my view correct??
Please answer..
1 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 25 March 2021
Yes, You can show 6% on 7897846 as there is difference regarding provisions of calculation of turnover as per GST act and as per IT act. For example in GST act sale of Fixed asset comes under the whole sale amount of assets but In IT Act, on sale of fixed assets only profit or loss on sales recognises
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