![]() Income by way of interest unless assessable as business income.Dividends on shares except in the case of an assessee dealing in shares.Rental income unless the same is assessable as business income.Sale proceeds of assets held as investments. ![]() Sale proceeds of fixed assets, including advance forfeited, if any.Where a professional receives an advance for services that are yet to be rendered, it will not form part of the gross receipts till the services are rendered.Out-of-pocket expenses recovered separately from the client shall not form part of gross receipts.The value of any benefit or perquisite, whether convertible into money or not, arising from business or exercise of a profession.įollowing receipts shall be excluded from the gross receipts:.Advance received and forfeited from customers.Hire charges and installments received in the course of hire purchase.Finance income to reimburse and reward the lessor for his investment and services.Lease rent in the business of operating lease.Sale proceeds of scrap, wastage, etc., unless treated as part of sale turnover, whether or not credited to a miscellaneous income account.Insurance claims, except those which are linked with fixed assets.However, if the same is credited to a separate account in books, only the net surplus on this account should be added to gross receipts or turnover. Reimbursement of expenses incurred (i.e., packing, forwarding, freight, insurance, travelling, etc.).The aggregate gross interest income received by a money lender, commission, brokerage, service, and other incidental charges received in the business of chit funds.Any duty drawback is payable to any person against exports under specified schemes.Cash assistance (by whatever name called) received or receivable by any person against exports under any scheme of government.Out-of-pocket expenses, recovered by way of consolidated fees, would form part of gross receipts.The following receipts shall be included in the gross receipts: However, certain receipts may or may not be included in the gross receipts. The ‘Guidance Note on Tax Audit’ issued by ICAI provides that in the case of professionals, ‘Gross receipts’ include all receipts arising from carrying on a profession. The term ‘Gross Receipts’ is not defined in the Income-tax Act. To be excluded from sales turnover unless the assessee is engaged in the business of dealing in scrap. Sale proceeds from the transfer of securities held as stock-in-trade Sale proceeds of property held as an investment Sale proceeds from the transfer of fixed assets If it is in the nature of commission on sales, the same cannot be deducted from the figure of turnover. ![]() To be excluded from sales turnover if it is in the nature of trade discount. To be excluded from sales turnover if discounts are allowed in the sales invoice ![]() The treatment thereof is explained in the below table. Some of these charges may form part of the sale turnover whereas some may be excluded while determining the value of sales turnover. The terms gross turnover and net turnover are sometimes used to differentiate the turnover before and after deduction of returns and discounts.Īn invoice may involve various extra and ancillary charges. Sales turnoverĪs per ‘Guidance Note on Terms Used in Financial Statement’ published by the ICAI, the meaning of the term’ sale turnover’ shall be aggregate of amount for which sales are affected by an enterprise. Applicability of tax audit under section 44AB depends upon gross receipts, sales, or turnover of an assessee, so the first and foremost thing is their calculations.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |