An assessee has an agency of milk. What will be his gross receipts - the total receipts he receives from sale of milk packets or the margin between his purchase and sales?
17 Replies
Devendra
(Chartered Accountant)
(4775 Points)
Replied 22 May 2011
The Assessee's Gross Receipts will be the Margin on the sale of Milk Packets.
Regards,
Devendra K
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 22 May 2011
Fuly agreedwit abov eviews
Sasanka Bhalaki
(Student)
(1935 Points)
Replied 22 May 2011
it is like the retail business..we should take the income from selling the packets and margin on it as gross receipts..
Vivek Mehta (CA, DISA,CS, MBA)
(I am in Practice and also giving understanding and guidance to the Students of CA Final and IPCC for various subjects esp for Direct Tax.)
(1629 Points)
Replied 22 May 2011
Margin on milk will be the gross receipt's
CA. Manav Goel
(CHARTERED ACCOUNTANTS)
(351 Points)
Replied 22 May 2011
For Presumptive taxation in the income tax act, we take the gross receipts means all receipts taking from the related business activity.
In your case we take the sale of milk packets
If u not satisfy with my answer u can contact to Income Tax customer care for reconfirmation
Thank you
Regards
Manav Goel
Sanchit
(CA & CS FINAL )
(96 Points)
Replied 23 May 2011
in case of presumtive taxation under section 44AD gross reciepts means reciepts out of sale of goods
so, in your case gross rrcpts will be sale of milk packets
Abhimanyu Bind
(CA Final Student & Audit Assitant)
(2051 Points)
Replied 23 May 2011
Gross receipt is the total revenue (including interest and rents) before deducting expenses so, the Gross receipt will be the total receipts received from sales of milk packets.
Agree with Manav.
Satvir Singh
(Newly minted CA)
(1733 Points)
Replied 23 May 2011
i think it should total receipts from sale of packets. If we take only margin here, then why not take margin in other trading activities also??
Naina
(CA Student)
(477 Points)
Replied 23 May 2011
I am still not confirmed. There are two views. Whether to take sale of packets or the margin as gross receipts?
*RENU SINGH *
(✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ )
(21627 Points)
Replied 23 May 2011
i am also in same view ...
that gross receipts will include sale of milk packets ...nt margin receipts
CA Aditya Goel
(Chartered Accountant)
(368 Points)
Replied 23 May 2011
hi.
i agree with manav . gross receipts is the total receipts from the business.
the margin between sales and purchase would be gross profit and not gross receipts.
in 44AD we will take 8% of total sale receipts as presumtive Income.
Hope its clear now.
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