{"id":5182,"date":"2018-07-31T14:56:02","date_gmt":"2018-07-31T09:26:02","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=5182"},"modified":"2024-03-06T15:13:03","modified_gmt":"2024-03-06T09:43:03","slug":"different-meaning-of-turnover-in-income-tax-act-companies-act-gst","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/different-meaning-of-turnover-in-income-tax-act-companies-act-gst\/","title":{"rendered":"Meaning of Turnover in Income Tax Act, Companies Act &#038; GST"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e83da32428a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e83da32428a\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/different-meaning-of-turnover-in-income-tax-act-companies-act-gst\/#As_per_companies_act_2013_%E2%80%93\" title=\"As per companies act, 2013: &#8211;\">As per companies act, 2013: &#8211;<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/different-meaning-of-turnover-in-income-tax-act-companies-act-gst\/#In_Companies_Acceptance_and_Deposit_Rule_2014\" title=\"In Companies Acceptance and Deposit Rule, 2014\u00a0\">In Companies Acceptance and Deposit Rule, 2014\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/different-meaning-of-turnover-in-income-tax-act-companies-act-gst\/#As_per_Guidance_Note_issued_for_Financial_Statements_%E2%80%93\" title=\"As per Guidance Note issued for Financial Statements: &#8211;\">As per Guidance Note issued for Financial Statements: &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/different-meaning-of-turnover-in-income-tax-act-companies-act-gst\/#As_per_Accounting_Standards_Interpretation_ASI-29_%E2%80%93\" title=\"As per Accounting Standards Interpretation (ASI)-29: &#8211;\">As per Accounting Standards Interpretation (ASI)-29: &#8211;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/different-meaning-of-turnover-in-income-tax-act-companies-act-gst\/#As_per_income_tax_act_1961_%E2%80%93\" title=\"As per income tax act, 1961: &#8211;\">As per income tax act, 1961: &#8211;<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/different-meaning-of-turnover-in-income-tax-act-companies-act-gst\/#Section_44AB\" title=\"Section 44AB:\">Section 44AB:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/different-meaning-of-turnover-in-income-tax-act-companies-act-gst\/#Section_44AD\" title=\"Section 44AD:\">Section 44AD:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/different-meaning-of-turnover-in-income-tax-act-companies-act-gst\/#Derivatives_futures_and_options\" title=\"Derivatives, futures and options :\">Derivatives, futures and options :<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/different-meaning-of-turnover-in-income-tax-act-companies-act-gst\/#Delivery_based_transactions\" title=\"Delivery based transactions:\">Delivery based transactions:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/different-meaning-of-turnover-in-income-tax-act-companies-act-gst\/#Gross_Receipt_the_following_items_of_income_would_be_included_%E2%80%93\" title=\"Gross Receipt:\u00a0the following items of income would be included: &#8211;\">Gross Receipt:\u00a0the following items of income would be included: &#8211;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/different-meaning-of-turnover-in-income-tax-act-companies-act-gst\/#As_per_GST_Act_%E2%80%93\" title=\"As per GST Act: &#8211;\">As per GST Act: &#8211;<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/different-meaning-of-turnover-in-income-tax-act-companies-act-gst\/#In_summarized_form_%E2%80%9CTurnover%E2%80%9D\" title=\"In summarized form \u201cTurnover\u201d:\">In summarized form \u201cTurnover\u201d:<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/different-meaning-of-turnover-in-income-tax-act-companies-act-gst\/#As_per_Amendments_in_GST_law_limits_of_turnover_are_as_follows_%E2%80%93\" title=\"As per Amendments in GST law limits of turnover are as follows: &#8211;\">As per Amendments in GST law limits of turnover are as follows: &#8211;<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/SSRR.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-5185\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/SSRR.jpg\" alt=\"www.carajput.com;Turnover\" width=\"919\" height=\"610\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/SSRR.jpg 548w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/SSRR-300x199.jpg 300w\" sizes=\"(max-width: 919px) 100vw, 919px\" \/><\/a><\/p>\n<h1 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"As_per_companies_act_2013_%E2%80%93\"><\/span><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">As per companies act, 2013: &#8211;<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/carajput.com\/oe-turnover.php\">&#8220;Turnover&#8221;<\/a> means the gross amount of revenue recognized in the profit and loss account from the sale, supply, or distribution of goods or on account of services rendered, or both, by a company during a financial year.<\/p>\n<p style=\"text-align: justify;\">From the above clause, it is clearly understood that the turnover of a company is defined on the basis of the amount of realization made during the financial year rather than the value of goods sold or service rendered during the financial year.<\/p>\n<p style=\"text-align: justify;\">The New Definition of turnover under companies act\u00a0<strong>{Section 2 (91)}\u00a0<\/strong>which says that calculation of realization of amount made from the sale of goods or rendering of service during the financial year is require to be done on cash basis.<\/p>\n<p style=\"text-align: justify;\">It means sales of goods and rendering of service on credit term basis during the year is not included in turnover.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"In_Companies_Acceptance_and_Deposit_Rule_2014\"><\/span><span style=\"color: #000080;\"><strong>In Companies Acceptance and Deposit Rule, 2014\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Define eligible company means company having turnover of not less than Rs. 500 crore or more.<\/p>\n<p style=\"text-align: justify;\">Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during the immediately preceding financial year shall constitute a\u00a0<a href=\"https:\/\/carajput.com\/blog\/corporate-social-responsibility-csr-norms-as-per-new-indian-companies-act-2013\/\"><strong>Corporate Social Responsibility<\/strong><\/a>\u00a0Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"As_per_Guidance_Note_issued_for_Financial_Statements_%E2%80%93\"><\/span><span style=\"color: #000080;\"><strong>As per Guidance Note issued for Financial Statements: &#8211;<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">\u00a0Turnover means the aggregate amount for which sales are effected or services.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"As_per_Accounting_Standards_Interpretation_ASI-29_%E2%80%93\"><\/span><span style=\"color: #000080;\"><strong>As per Accounting Standards Interpretation (ASI)-29: &#8211;<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Recognized as revenue in the statements of the contractors as per the requirement of AS-7\u201d<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>As per The Statement on the Companies (Auditors&#8217; Report) Order, 2003 issued by the Institute in April 2004, while discussing the term \u2018turnover\u2019 in paragraph 23 states `as follows: &#8211;<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The term, <a href=\"https:\/\/carajput.com\/oe-turnover.php\">&#8220;Turnover&#8221;<\/a>, has not been defined by the Order. Part II of Schedule VI of the Act, however, defines the term &#8220;turnover&#8221; as the aggregate amount for which sales are affected by the company.<\/p>\n<p style=\"text-align: justify;\">It may be noted that the &#8220;sales effected&#8221; would include sale of goods as well as services rendered by the company.<\/p>\n<p style=\"text-align: justify;\">In an agency relationship, turnover is the amount of commission earned by the agent and not the aggregate amount for which sales are affected or services are rendered.<\/p>\n<p style=\"text-align: justify;\">The term &#8220;turnover&#8221; is a commercial term and it should be construed in accordance with the method of accounting regularly employed by the company.<\/p>\n<h1 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"As_per_income_tax_act_1961_%E2%80%93\"><\/span><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">As per <a style=\"color: #000080; text-decoration: underline;\" href=\"https:\/\/www.caindelhiindia.com\/blog\/implication-of-cash-transaction-under-income-tax-act\/\">income tax act, 1961:<\/a> &#8211;<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Section_44AB\"><\/span><span style=\"color: #000080;\"><strong>Section 44AB<\/strong>:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">An assessee is required to get his accounts audited when his turnover\/sales from business is more than Rs 1 crore<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Section_44AD\"><\/span><span style=\"color: #000080;\"><strong>Section 44AD:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">\u00a0Businesses, whose annual gross turnover does not exceed Rs. 2 Crore, are eligible under this scheme.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Derivatives_futures_and_options\"><\/span><span style=\"color: #000080;\"><strong>Derivatives, futures and options :<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Such transactions are completed without the delivery of shares or securities. Turnover in such type of transactions are to be determined as follows: &#8211;<\/p>\n<ol style=\"text-align: justify;\">\n<li>The total of favorable and unfavorable differences shall be taken as turnover.<\/li>\n<li>Premium received on sale of options is also to be included in turnover.<\/li>\n<li>In respect of any reverse trades entered, the difference thereon should also form part of the turnover.<\/li>\n<\/ol>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Delivery_based_transactions\"><\/span><span style=\"color: #000080;\"><strong>Delivery based transactions:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">\u00a0Where the transaction for the purchase or sale of any commodity including stocks and shares is delivery based whether intended or by default, the total value of the sales is to be considered as turnover.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Gross_Receipt_the_following_items_of_income_would_be_included_%E2%80%93\"><\/span><span style=\"color: #000080;\"><strong>Gross Receipt:<\/strong>\u00a0the following items of income would be included: &#8211;<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol style=\"text-align: justify;\">\n<li style=\"text-align: left;\">i) Cash assistance received or receivable by any person against exports under any scheme of the Government of India;<\/li>\n<\/ol>\n<p style=\"text-align: justify;\">(ii) Any duty of customs or excise or service tax re-paid or repayable as drawback to any person against exports under the Customs and Central Excise Duties and Service tax Drawback Rules, 1995;<\/p>\n<p style=\"text-align: justify;\">(iii) The aggregate of gross income by way of interest received by the money lender;<\/p>\n<p style=\"text-align: justify;\">(iv) Commission, brokerage, service and other incidental charges received in the business of chit funds;<\/p>\n<p style=\"text-align: justify;\">(v) Reimbursement of expenses incurred and if the same is credited to a separate account in the books, only the net surplus on this account should be added to the turnover for the purposes of Section 44AB;<\/p>\n<p style=\"text-align: justify;\">(vi) The Net exchange rate difference on export sales during the year on the basis of the principle explained in.<\/p>\n<p style=\"text-align: justify;\">\u00a0(v) Above will have to be added;<\/p>\n<p style=\"text-align: justify;\">\u00a0(vii) Hire charges of cold storage;<\/p>\n<p style=\"text-align: justify;\">\u00a0(viii) Liquidated damages;<\/p>\n<p style=\"text-align: justify;\">(ix) Insurance claims &#8211; except for fixed assets;<\/p>\n<p style=\"text-align: justify;\">(x) Sale proceeds of scrap, wastage etc. unless treated as part of sale or turnover, whether or not credited to miscellaneous income account;<\/p>\n<p style=\"text-align: justify;\">(xi) Gross receipts including lease rent in the business of operating lease;<\/p>\n<p style=\"text-align: justify;\">(xii) Finance income to reimburse and reward the less or for his investment and services;<\/p>\n<p style=\"text-align: justify;\">(xiii) Hire charges and instalments received in the course of hire purchase;<\/p>\n<p style=\"text-align: justify;\">(xiv) Advance received and forfeited from customers.<\/p>\n<p style=\"text-align: justify;\">(xv) The value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession.<\/p>\n<p style=\"text-align: justify;\">The following items would\u00a0<strong>not form part of &#8220;gross receipts in business&#8221;<\/strong>\u00a0for purposes of\u00a0<strong>section 44AB.<\/strong><\/p>\n<p style=\"text-align: justify;\">(i) Sale proceeds of fixed assets including advance forfeited,<\/p>\n<p style=\"text-align: justify;\">(ii) Sale proceeds of assets held as investments;<\/p>\n<p style=\"text-align: justify;\">(iii) Rental income unless the same is Assessable as business income;<\/p>\n<p style=\"text-align: justify;\">(iv) Dividends on shares except in the case of an Assessee dealing in shares;<\/p>\n<p style=\"text-align: justify;\">(v) Income by way of interest unless Assessable as business income;<\/p>\n<p style=\"text-align: justify;\">(vi) Re Imbursement of customs duty and other charges collected by a clearing agent;<\/p>\n<p style=\"text-align: justify;\">(vii) In the case of a recruiting agent, the advertisement charges received by him by way of reimbursement of expenses incurred by him;<\/p>\n<p style=\"text-align: justify;\">(viii) In the case of a travelling agent, the amount received from the clients for payment to the airlines, railways etc. where such amounts are received by way of reimbursement of expenses incurred on behalf of the client.<\/p>\n<p style=\"text-align: justify;\">(ix) In the case of an advertising agent, the amount of advertising charges recovered by him from his clients provided these are by way of reimbursement.<\/p>\n<p style=\"text-align: justify;\">(x) Share of profit of a partner of a firm in the total income of the firm excluded from his total income under section 10(2A) of the Income-tax Act;<\/p>\n<p style=\"text-align: justify;\">(xi) Write back of amounts payable to creditors and provisions for expenses or taxes no longer required.<\/p>\n<p><strong><em><u>Read more about: <\/u><\/em><em><a href=\"https:\/\/carajput.com\/blog\/what-is-core-business-activity-in-gst\/\">What is core Business Activity GST<\/a><\/em><\/strong><\/p>\n<p><strong><em><u>Read more about<\/u><u>: <\/u><\/em><em><a href=\"https:\/\/carajput.com\/blog\/all-about-gst-offenses-penalties-appeals\/\">All about GST Offenses, Penalties, and Appeals<\/a><\/em><\/strong><\/p>\n<h1 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"As_per_GST_Act_%E2%80%93\"><\/span><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">As per <a style=\"color: #000080; text-decoration: underline;\" href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">GST Act<\/a>: &#8211;<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-23666\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/photo_2022-11-15_18-57-07.jpg\" alt=\"sale as per GST \" width=\"1280\" height=\"764\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/photo_2022-11-15_18-57-07.jpg 1280w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/photo_2022-11-15_18-57-07-300x179.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/photo_2022-11-15_18-57-07-1024x611.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/photo_2022-11-15_18-57-07-768x458.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/photo_2022-11-15_18-57-07-800x478.jpg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p>\n<p style=\"text-align: justify;\">In past, CST\/VAT was levied on sale of goods, Service Tax was levied on sale of services while Excise Duty was levied on manufacture.<\/p>\n<p style=\"text-align: justify;\">Under the proposed current GST regime, these and certain other levies are proposed to be subsumed and Tax is leviable on supply of goods or services or a blend of both.<\/p>\n<p style=\"text-align: justify;\">The concept of \u201csupply\u201d and what forms part of Turnover, would be included. The scope of \u201csupply\u201d is quite wide and includes:<\/p>\n<ol style=\"text-align: justify;\">\n<li>sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made;<\/li>\n<li>importation of service, whether or not for a consideration; and<\/li>\n<li>specified in Schedule I, made or agreed to be made without a consideration.<\/li>\n<\/ol>\n<p style=\"text-align: justify;\">Under the proposed GST regime, \u201cTurnover in a State\u201d has been defined as \u201cthe aggregate value of all taxable and non-taxable supplies, including exempt supplies and exports of goods and\/or services made within a State by a taxable person and inter-state supplies of goods and\/or services made from the State by the said taxable person excluding taxes.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"In_summarized_form_%E2%80%9CTurnover%E2%80%9D\"><\/span><span style=\"color: #000080;\">In summarized form \u201cTurnover\u201d:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Includes:<\/p>\n<p style=\"text-align: justify;\">\u00a0Supplies in Goods or Services or in both effected within state or outside the state.3<\/p>\n<p style=\"text-align: justify;\">\u00a0Stock Transfer, Barter, Gift in kind, Samples, Exchange of services, etc.3<\/p>\n<p style=\"text-align: justify;\">\u00a0Exempted supplies, supplies made in the course of export.3<\/p>\n<p style=\"text-align: justify;\">\u00a0Excludes: Taxes Leviable under the GST Enactments.7<\/p>\n<p style=\"text-align: justify;\">Turnover Redefinition brings certain changes:-<\/p>\n<ul style=\"text-align: justify;\">\n<li>For Small business exemption is Aggregate Turnover over Rs.9 lakhs for registration and Rs.10 lakhs for levy of Tax. Impact of these are as follows:-<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">\u00a0More businesses coming into the Taxation regime.3<\/p>\n<p style=\"text-align: justify;\">\u00a0Improved benefits with respect to Input Credits.3<\/p>\n<p style=\"text-align: justify;\">\u00a0Compliance requirements for Small Businesses.7<\/p>\n<ul style=\"text-align: justify;\">\n<li>For Persons exclusively dealing in exempted goods\/services or Exports would be mandatory to take GST registration.<\/li>\n<li>For North-eastern States Aggregate Turnover over Rs.4 lakhs for registration and Rs.5 lakhs for levy of Tax (as against 9 and 10 lakhs respectively)<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"As_per_Amendments_in_GST_law_limits_of_turnover_are_as_follows_%E2%80%93\"><\/span><span style=\"color: #000080;\"><strong>As per Amendments in GST law limits of turnover are as follows: &#8211;<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\">Limit of turnover for opting for composition scheme to be raised from Rs. 1\u00a0crore to Rs. 1.5 crore. Present limit of turnover can now be raised on the\u00a0recommendations of the Council.<\/li>\n<li style=\"text-align: justify;\">Composition dealers to be allowed to supply services (other than restaurant services), for up to a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is higher.<\/li>\n<li style=\"text-align: justify;\">Exemption limit for registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand to be increased to Rs. 20 Lakhs from Rs. 10 Lakhs<\/li>\n<li style=\"text-align: justify;\">Council approved quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-26239\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Pan-.jpg\" alt=\"Pan &amp; GST \" width=\"934\" height=\"491\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Pan-.jpg 934w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Pan--300x158.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Pan--768x404.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Pan--800x421.jpg 800w\" sizes=\"(max-width: 934px) 100vw, 934px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As per companies act, 2013: &#8211; &#8220;Turnover&#8221; means the gross amount of revenue recognized in the profit and loss account from the sale, supply, or distribution of goods or on account of services rendered, or both, by a company during a financial year. From the above clause, it is clearly understood that the turnover of &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,150,172,9,4],"tags":[5580,5587,5586,5591,5582,5576,5579,5588,5589],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5182"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=5182"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5182\/revisions"}],"predecessor-version":[{"id":26243,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5182\/revisions\/26243"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=5182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=5182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=5182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}