Turn Over in Restaurant - Definitions

[Asked by Guest]

Does the restaurant labour daily wages (Kitchen Chef, Helper, Cleaner, Waiter,Cashier,Floor Manager etc) needs to be included in the TurnOver of the Restaurant.

Could someone highlight what are the expenses included in the turnover of the restaurant in a detailed manner, please.

[YAGAY and SUN]

All such expenses and income must be recorded in proper manner.

Thank you so much. The restaurant is in Tamil Nadu Location.

So you are telling that Expenses like Labour Wages are also needs to be included as a Turnover for the purpose of the Restaurant. Am I right?

[YAGAY and SUN]

Both, Expenses/Purchases/Bought out Goods and Income/Sales must be separately book to dig out the profit and tax liabilities etc.

[Sarveshwar Mundra]

Turnover doesn't include any type of expenses including wages.

[KASTURI SETHI]

As per dictionary meaning, "The turnover of a company is the value of the goods or services sold during a particular period of time.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir's reply.

Turnover means the aggregate amount for which goods are bought or sold, or delivered or supplied or otherwise disposed of by a dealer either directly or through another, on his own account or on account of others.

The extract of term turnover as per TNVAT Act is reproduced here “turnover” means the aggregate amount for which goods are bought or sold, or delivered or supplied or otherwise disposed of in any of the ways referred to in clause (33), by a dealer either directly or through another, on his own account or on account of others whether for cash or for Deferred payment or other valuable consideration, provided that the proceeds of the sale by a person of agricultural or horticultural produce, other than tea and rubber (natural rubber latex and all varieties and grades of raw rubber) grown within the State by himself or on any land in which he has an interest whether as owner, usufructuary mortgagee, tenant or otherwise, shall be excluded from his turnover.

Turnover would not include expenses of the nature explained by the querist in his query. Thanks.

[YAGAY and SUN]

Dear Sid E,

As stated earlier, just avail the services of a professional/CA/ICWA/Tax Expert for having clarification on your queries.

Regards,

YAGAY and SUN

Thanks Much Yagay.

You have given best advise. But I struggle to find one expert. Do you know anyone or contact details in and around Tamil Nadu, so that I can pay and seek advise.

[YAGAY and SUN]

We can do it for you on payment of our professional fees. If possible, send us your query with all material facts, your doubts, data, documents. After going through the same, we will quote our professional fees and if you give your consent and accept our offer then we will provide you with our opinion.

Thank you so much. That would be great.

I prepare the papers chronologically and submit in PDF format via your email [email protected] and liaise.

Yagaysun Sir

I have already sent information and documents to your mail. Kindly have a look at it, please.

AI Summary

Turnover definition excludes wages and operating expenses, so restaurant payroll is recorded as expenses not turnover for VAT treatment.
Turnover denotes the aggregate value of goods or services sold or otherwise disposed of for consideration; internal labour costs such as wages for chefs, helpers, waiters and cleaners are not included in turnover but must be recorded separately as expenses to determine profit and VAT/CST liabilities.