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Ankit kaushikAnkit kaushik asked 12 months ago

Question – under items of inclusion/exclusion from Turnover, Explain the treatment of the IDT – Exclusion and Inclusion Method?.
Furthermore, In the practical world, we recognize the Taxable amount of Invoice as our turnover. Actually, I am totally confused on this point. Can we connect with sir on-call?.

2 Answers
RaviRavi Staff answered 12 months ago

We are discussing TO calculation from Income Tax Audit point of view
IDT Exclusive Method of Accounting
Cash / Bank / Debtor Dr 118
To Sales A/c 100
IDT Payable 18

In such case we exclude IDT while calculating TO

 
IDT Inclusive Method of Accounting
Cash / Bank / Debtor Dr 118
To Sales A/c 118
 
In such case we include IDT while calculating TO

RaviRavi Staff answered 12 months ago

In practical world both things are possible, generally people follow exclusive method of accounting

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