![]() 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 the fixed assets. ![]() ![]() However, if the same is credited to a separate account in books, only net surplus on this account should be added to gross receipt or turnover. Reimbursement of expenses incurred (i.e., packing, forwarding, freight, insurance, traveling, 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.However, certain receipts may or may not be included in the gross receipts, which are as follows.įollowing receipts shall be included in the gross receipts: The ‘Guidance Note on Tax Audit’ issued by ICAI provides that in the case of professionals, ‘Gross receipts’ includes 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 assessee is engaged in the business of dealing in scrap. Sale proceeds from the transfer of securities held as stock-in-trade Sale proceeds from the transfer of fixed assets 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. This book will be helpful for the Chartered Accountants, Lawyers/Advocates, and Tax Practitioners to assist them in their day-to-day tax work. This book is divided into two parts, i.e., the law relating to Tax Procedures, including Tax Practice and Case Studies. Check out Tax Practice Manual which is is an exhaustive (2,000+ pages), amended (by the Finance Act, 2022) & practical guide (330+ case studies covering 30+ topics) for Tax Professionals. 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.
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