Total turnover - Definition / Legal Terminology - Income Tax

Explanation (j) . - For the purposes of section 80HHF of the Income tax Act 1961 - Total turnover shall not include- (A) any sum referred to in clauses (iiia), (iiib) and (iiic) of section 28; (B) any freight, telecommunication charges or insurance attributable to the delivery of the film software, music software, telecast rights, television news software, or television software as defined in clause (d), (e), (g), (h) or (i), as the case may be, outside India; (C) expenses, if any, incurred in foreign exchange in providing the technical services outside India . Explanation . (ba) -For the purposes of section 80HHC of the Income tax Act 1961 -, total turnover shall not include freight or insurance attributable to the transport of the goods or merchandise beyond the customs station as defined in the Customs Act, 1962: Provided that in relation to any assessment year commencing on or after the 1st day of April, 1991, the expression total turnover shall have effect as if it also excluded any sum referred to in clauses (iiia), (iiib), (iiic), (iiid) and (iiie)] of section 28 ; COMMISSIONER OF INCOME-TAX VERSUS LAKSHMI MACHINE WORKS- 2007 (4) TMI 202 - SUPREME COURT . ...........state that profits are of three types, namely, book profits, statutory profits and actual profits. The amendments to section 80HHC(3) indicate exclusion of book profits. For example, commission, interest, etc. do form part of the profit and loss account but for the purposes of calculation of profits derived from local sales and exports, they stand excluded. The difficulty arises because the formula is based on the hybrid system of profits, namely, actual and statutory profits. Therefore, this judgment should be read in the context of the above parameteRs........