Hi
The turnover shall only include taxable invoices. All the other charges taken as reimbursements on a pure agent principle would not constitute part of your turnover.
Turn over calculation for filing IT returns
Dear Sir / Madam, We are a Customs Broker company. We are raising 2 invoices for the clearance of Import / Export to our clients. 1 is a Taxable invoice and the other one is a Debit Note. We are charging our service charges and other nonreceiptable charges in the taxable invoice and the Reimbursement charges which we are paying on behalf of the client to other service providers like CFS / Steamer Agent / Customs Duty etc in the debit note. In this case, to calculate the Turnover of the company should we consider only taxable invoices or debit notes also to be included. Since the CFS / Steamer Agent / Customs Duty is being paid our turnover will be enormous if we add the same into our turnover. Kindly clarify.
Asked 3 years ago in Income Tax
Dear Sir,
Hope you are doing well !!
Yes, you need to consider taxable invoices only.
In your case, turnover is the amount of taxable invoice, excluding GST, raised in your tax invoices. It does not include claims for reimbursements, raised in your debit notes. However, it does include your service charges, whether you claim such service charges in the tax invoices or in debit note.
You should consider only taxable invoices or debit notes
- It depends on accounting of the debit notes. Debit note is not your income as it is a reimbursement of expenses. It should not be credited to P&L account. It should hit the expenses account done on behalf of the client. Maintain separate ledgers for easy identification and classification. At the time of finalization of Financials expenses account maintained on behalf of the client should be NIL.
- If you are acting as a pure agent for the clients then reimbursement expenses raised through debit note does not attract GST. In GST returns,reference of debit note should be given.
- You can share copy of agreement to check status of pure agent or take personal phone consultation for detailed discussion.
Your T/O will include only Taxable Invoices. ( If any kind of profit is included in amt collected for reimbursement than it will also be included in T/O or else it wont be)
Your turnover should only be your tax invoice as that other amount is pure reimbursement.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement. You can even book phone consultation for further personal assistance.
Thank you.
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