Turnover for Section 44AD

[Bipin Parmar]

Dear Experts,

What is the definition of 'Turnover' for the purpose of section 44AD? Does it include GST for the purpose of calculating 8% / 6% profit and ceiling limit of 2 crore?

Thanks & Regards

Bipin

AI Summary

GST Included in 'Turnover' Under Section 44AD for Tax Calculations Despite ICAI Guidance Note Discrepancy A forum participant inquired about the definition of 'Turnover' under Section 44AD of the Income Tax Act, specifically whether it includes GST for calculating profit percentages and the ceiling limit. An expert responded affirmatively, stating that GST should be included, as no exemption is provided. However, the inquirer noted a discrepancy with the ICAI guidance note on tax audits, which excludes indirect taxes from turnover calculations. The expert explained that if taxes like sales tax and excise duty are included in the sale price, no adjustment is needed. The inquirer further questioned this based on a provision in the Central Sales Tax Act.