Is Tax included in computation of Turnover for Audit?

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  1. SANIA SETHI

    SANIA SETHI New Member

    Dear Sir
    My client's turnover is 92lakhs and as per Sec 44AB turnover limit is 1crore.
    But Sec 145A says turnover includes all taxes, cess, vat etc.
    Should i go for tax audit or not?
     
  2. Here "turnover sales" for the purpose of sec. 44AB may be interpreted to mean the aggreegate amount for which sales are affected or services renderd by the enterprise.
    In my opinion maintaining a/c's of excise duty,VAT seprately is not correct in terms of sec.145A of the IT act.
    In that sence for determining the word 'Turnover' ,VAT or excise duty should also be considered for the same.
    However,sales of scrap not included,cash discount not deducted,sales proceeds of fixed assets or any investments shall also be not included.
     
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