Definition of Gross receipts:
Gross receipts are sales of a business that form the basis for corporate taxation in a handful of individual states and certain local tax authorities. The components of gross receipts vary by state and municipality.
Total revenue (including interest and rents) before deducting expenses, but commonly after deducting revenue from the sales of fixed assets and withholding taxes collected from the employees.
Gross receipts include income to a business from all sources without any deductions. Unlike gross sales, gross receipts capture anything that is not related to the normal business activity of an entity — tax refunds, donations, interest and dividend income, and others. Also, gross receipts do not account for discounts or price adjustments. Some states and local tax jurisdictions impose taxes on gross receipts instead of corporate income tax or sales tax.
How to use Gross receipts in a sentence?
- You should keep great records including your gross receipts when you want to be able to fully budget your companies assets.
- The gross receipts were above and beyond the previously forecasted expectation made by the financial analyst for the construction company.
- Before I could do all of the other budgetary things, I had to determine how much we had in gross receipts .
Meaning of Gross receipts & Gross receipts Definition