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.

AI Summary

Turnover under Section 44AB excludes GST, so contractor receipts are treated net of tax. GST does not form part of turnover for the purpose of Section 44AB. Revenue should be recognised in the books net of GST, and GST collected is recorded as a current liability because it is a statutory tax payable to the government. For computation of turnover under the relevant income-tax provision, the taxable receipt is the value of work excluding GST.