Turnover - Definition - Law Dictionary Home Dictionary Definition turnover

Definition :

Turnover, in laws dealing with Sales Tax, 'turnover' includes tax in calculating the total turnover, there is nothing wrong in treating the tax as part of the turnover, because, 'turnover' means the amount of money which is turned over in the business, George Oakes (P) Ltd. v. State of Madras, AIR 1962 SC 1352.

Turnover is defined to mean: 'the aggregate amount for which goods are bought or sold or supplied or distributed by a dealer either directly or through another on his own account or on account of others whether for cash or for deferred payment or for other valuable consideration, Joint Commercial Tax Officer v. Young Men's Association (Regd.), AIR 1970 SC 1212 (1215): (1970) 1 SCC 462: (1970) 3 SCR 680.

Turnover means an aggregate amount for which goods are either bought by or sold by a dealer, whether for a cash or for deferred payment or other valuable consideration, State of Andhra Pradesh v. H. Abdul Bakhi and Brothers, AIR 1965 SC 531 (532): (1964) 7 SCR 664. [Hyderabad General Sales Tax Act (14 of 1950), s.2 (m)]

The expression 'turnover' is defined in s. 2(t). It says: 'Turnover' means the aggregate of the amount of sale prices received or receivable by a dealer in respect of the sale or supply of goods in the carrying out of any contract, Gopal Industries Ltd. v. State of Rajasthan, AIR 1971 SC 2054: (1971) 2 SCC 532.

The definition of 'turnover' clearly indicates that the total amount charged as the consideration for the sale is to be taken into account for determining the turnover. Where a bill of sale is issued (and obviously the bill has to state the total amount charged as consideration), the total amount set out therein is to be taken into account. Excise duty though paid by the purchaser to meet the liability of the appellant, is a part of the consideration for the sale and is includible in the turnover of the manufacturer, McDowell & Company Limited v. Commercial Tax Officer, AIR 1986 SC 649 (659): (1985) 3 SCR 791: (1985) 3 SCC 230. [A.P. General Sales Tax Act, (6 of 1957), s. 2(a)]

Total turnover is defined in s. 2(q) of the Tamil Nadu General Sales Tax Act, 1959 as the aggregate turnover in all goods of a dealer at all places of business in the State, whether or not the whole or any portion of such turnover is liable to tax, Joint Commercial Tax Officer v. Spencer & Co., AIR 1975 SC 1801: (1975) 2 SCC 358: (1975) Supp SCR 439.

Used in relation to any dealer liable to tax under this Act means the aggregate of the sale prices received and receivable by him in respect of sales of any goods in the course of inter-State trade or commerce made during any prescribed period and determined in accordance with the provisions of this Act and the rules made thereunder. [Central Sales Tax Act, 1956 (74 of 1956), s. 2 (j)]

Includes values of sale of goods or services. [Competition Act, 2002 (12 of 2003) s. 2(y)]

In its ordinary sense connotes amount of business usually expressed in terms of gross revenue transacted during a specified period (vide Collins Dictionary). Broadly speaking, it represents the value of the goods or services sold or supplied during a period of time. The amount of money turned over or drawn in a business during a certain period, is another shade of meaning. The expression, 'turnover' in the Drug Policy, 1994 represents the sale value of the bulk drug sold as such or in the form of formulations. Export sales should not be taken into account while computing the turnover, Secy. Ministry of Chemicals & Fertilizers v. Cipla Ltd., (2003) 7 SCC 1 (13, 23). [Drug Policy, 1994, Para 22.7 2(i) and 9]

Turnover, includes tax thus tax becomes, for the time being, a part of the circulating capital of the trader and is turned over in his business, George Oakes Ltd. v. State of Madras, AIR 1962 SC 1352: (1962) 13 STC 98.