Competition Commission explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Competition Commission of India (Determination of Turnover or Income) Regulations, 2024 (No. 05 of 2024) say how turnover or income is worked out when the Commission imposes a penalty. They have five regulations. They were notified on 6 March 2024 and, as printed, came into force on the date of their publication in the Official Gazette. Later amendments should be checked.
For an enterprise, turnover or income includes value of sales (or revenue or receipts, by whatever name called) and other operating revenue, as per audited financial statements; other income, indirect taxes, trade discounts and intra-group sales are not taken into account. Consolidated statements apply where required. Where audited statements are not available, an auditor's or Chartered Accountant's certificate with an affidavit is used. For an individual, income is gross total income as per the income tax returns, excluding house property and capital gains.
What the regulations cover and which sections they implement
As per the consolidated text of the Act published by the Competition Commission of India (amendments shown up to the Finance Act, 2017), read with the Competition (Amendment) Act, 2023 as published in the Gazette of India on 11 April 2023, the penalty under Section 27(b) and Section 48 is a percentage of average turnover or income, which is to be "determined in such manner as may be specified by regulations". The 2024 regulations are the instrument. They are made under Section 64(1) and clauses (fb) and (gd) of Section 64(2), read with the Explanation to clause (b) of Section 27 and clause (c) of the Explanation to Section 48. The regulation's own definition says turnover means turnover as defined under Section 2(y) of the Act and as explained in Explanation 2 under Section 27(b). The gazette prints Section 27(b) with Explanation 1 (manner of determining turnover or income) and Explanation 2 (turnover means global turnover derived from all products and services). The regulations' preamble speaks of "the Explanation", a wording difference that is noted here and not resolved.
The sections are explained in Section 27 and Section 48. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked. If you need to document turnover for a Commission inquiry, our financial and legal due diligence team can assist with the certificate and the underlying records.
Structure, regulation by regulation
| Regulation | Subject | What it says, as printed |
|---|---|---|
| 1 | Short title and commencement | In force on publication in the Official Gazette (6 March 2024 notification) |
| 2 | Definitions | "Chartered Accountant" as in the Explanation to Section 35; "Turnover" as defined under Section 2(y) and as explained in Explanation 2 under Section 27(b) |
| 3 | Turnover or income for an enterprise under Section 27 | Sales, revenue or receipts and other operating revenue, as per audited financial statements; exclusions; consolidated statements; certificate where audited statements are not available; currency conversion |
| 4 | Income of an individual for Sections 27 and 48 | Gross total income as per income tax returns, excluding house property and capital gains; certificate where returns are not available |
| 5 | Removal of difficulties | The Commission's decision is binding |
The instrument contains no fee and no numerical period.
Regulation 3: enterprises
Regulation 3(1): "Turnover or income, as the case may be, includes value of sales (or revenue or receipts, by whatever name called), and other operating revenue, as per the audited financial statements maintained by such enterprise." The Explanation: "For the purpose of this regulation, other income, indirect taxes, trade discounts and intra-group sales, if any, shall not be taken into account."
Regulation 3(2): where an enterprise is required to prepare a consolidated financial statement under Section 129 of the Companies Act, 2013 or under any law, turnover or income is based on such audited consolidated statements. The Companies Act, 2013 is named as printed; check the current law for the corresponding provision.
Regulation 3(3): where audited financial statements are not available, turnover or income is "the amount certified by the statutory auditor of the enterprise, or a Chartered Accountant, and supported by an affidavit by any person duly authorised by the enterprise".
Regulation 3(4): where turnover or income is not maintained in Indian Rupees, it is converted "based on the average of the foreign currency reference rates as published by the Reserve Bank of India, for each of the relevant financial year as certified by a Chartered Accountant and supported by an affidavit by any person duly authorised by the enterprise". The printed words are "for each of the relevant financial year"; this is quoted as printed.
Regulation 4: individuals
Regulation 4(1): "Income in case of an individual shall be the gross total income as per the Income Tax Returns (ITRs) as prescribed under the Income Tax Act, 1961 and the rules framed thereunder", which excludes (a) income from house property and (b) income from capital gains. The Income Tax Act, 1961 is named as printed; check the current law and see our income-tax guides for the corresponding provision.
Regulation 4(2): where Income Tax Returns are not available, or are filed in multiple jurisdictions or not filed in any jurisdiction, income is "the total income as certified by a Chartered Accountant and supported by an affidavit by such individual." Regulation 4(3) gives the same rule for an individual who is not required to file returns.
The word "individual" matters for Section 48. The persons in charge of a company, and the directors, managers and other officers caught by Section 48, are penalised by reference to their income. The Explanation to Section 48(c) leaves the manner of determining "income" to regulations, and regulation 4 is the instrument.
How the regulations fit with the Penalty Guidelines
The Penalty Guidelines, 2024 define "income" as the income determined under these regulations and "turnover" as turnover as defined under them. Their paragraph 3(4) also deals with the certificate and affidavit for turnover or income from audited financial statements. See the overview of the Monetary Penalty Guidelines. The Settlement Regulations also use the Penalty Guidelines to compute the base amount: see Settlement.
Practical example
Delta Engineering Ltd (invented) has sales of rupees 400 crore, other operating revenue of rupees 20 crore, interest income of rupees 15 crore, indirect taxes collected of rupees 30 crore and intra-group sales of rupees 25 crore, all in its audited financial statements. Under regulation 3(1) and its Explanation, the amount counted is sales and other operating revenue, with other income, indirect taxes and intra-group sales left out. Whether trade discounts have already been netted off in the sales figure is a matter for the statements and the certificate. All figures here are invented.
Need help documenting turnover or income?
A penalty percentage is only as accurate as the figure it is applied to. Our financial and legal due diligence team can reconcile the statements to regulation 3, prepare the certificate and affidavit, and handle conversion of foreign currency amounts.
Key takeaways
- Five regulations, notified on 6 March 2024; check later amendments.
- Enterprise turnover or income: sales, revenue or receipts and other operating revenue from audited statements; other income, indirect taxes, trade discounts and intra-group sales are left out.
- Consolidated statements where required; certificate and affidavit where audited statements are not available.
- Foreign currency is converted at the average of the Reserve Bank of India reference rates, certified by a Chartered Accountant.
- Individual income: gross total income per returns, without house property and capital gains.
Read next
- Section 27 of the Competition Act, 2002: orders and penalty after inquiry
- Section 48: contravention by companies and liability of officers
- How penalty is computed under the Monetary Penalty Guidelines, 2024
- Penalties under the Competition Act for cartels and abuse
Disclaimer: Based on the consolidated text of the Competition Act, 2002 published by the Competition Commission of India (amendments shown up to the Finance Act, 2017), read with the Competition (Amendment) Act, 2023 as published in the Gazette of India on 11 April 2023, and on the regulations and guidelines of the Commission as notified in 2024, as consulted on 2 October 2026. Commencement notifications, notified thresholds, rules and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.