GS Shanmugam (Freelance Accountant) (39 Points)
25 May 2008What items in a sales invoice constitute turnover viz. sale price, VAT/CST, pkg chgs, freight for purpose of P&L a/c. Pl specify the sec. of IT Rules which defines TOTAL TURNOVER. Please also quote the sec. verbatim. Similarly what items in a purchase invoice constitute PURCHASE viz. cost, VAT/CST, ED, Pkg, freight
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 25 May 2008
Sales turnover consists of just the sales amount in the case of an FOB contract.
But for the purpose of tax audit u/s 44AB of IT Act it is the gross receipts which includes all items of recovery.
vikas garg
(student)
(44 Points)
Replied 29 May 2008
total turnover is defined u/s 44AB if the gross sales or receipts exceeds 40 lacs then audit is compulsory and have to done by C.A.
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