sale turnover for works contractor

[giri gattupalli]

respected sir

for a R&B works contractor total gross bill received for fy 2019-20 is 1,00,000,00 (one crore)

gross receipts for fy 2019-20 = 1,00,00,000

gst included at 12% 10,71,429

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gross receipts for

incometax under sec 44AB is 89,28,571

whether i am right or wrong please discuss

thanking you

[KASTURI SETHI]

Is there any clause in the contract/agreement to the effect that gross receipt i.e. Rs.one crore will be inclusive of GST ?

[giri gattupalli]

respected sir

as per the final payment issued to contractor , contractor received

value of work done =89,28,571

gst = 10,71,429

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total = 1,00,00,000

[KASTURI SETHI]

GST does not form part of ' turnover' under Section 44 AB of the Income Tax Act.

[giri gattupalli]

thank you sethi ji

[Ganeshan Kalyani]

I fully agree with the views of Sri Kasturi Sir. Revenue accounted in books net of GST. And, GST is accounted in current liability as it is a statutory liability and shall be paid.