Packaging exp. need to consider in calculation of gp?
This query is : Resolved
18 August 2011
Dear Experts,
we are mfg of dyes in powder form. While selling to customer we use spl kind of bags.
Whether we need to consider the cost of these bags as packaging exp in calculating Gross Profit?
Waiting for your reply
Thanks in advance.
Regards,
Sushil.
we are mfg of dyes in powder form. While selling to customer we use spl kind of bags.
Whether we need to consider the cost of these bags as packaging exp in calculating Gross Profit?
Waiting for your reply
Thanks in advance.
Regards,
Sushil.
19 August 2011
it is need to be treated as direct expenses as packing expenses and considered for calculating GP
19 August 2011
Packing is of Two types :
1. Primary Packing( Part of Direct Cost)
2. Secondary Packing (part of Selling exp)
From ur query it is assumed that the special packing is secondary packing which makes the product more attractive.
Hence the special packing expense may not be considered for calculating GP.
1. Primary Packing( Part of Direct Cost)
2. Secondary Packing (part of Selling exp)
From ur query it is assumed that the special packing is secondary packing which makes the product more attractive.
Hence the special packing expense may not be considered for calculating GP.
19 August 2011
I disagree with Sijo Philip. No doubt he is right but as the powder is packed in bags it is primary packing. They are not packing in pouches and then putting it in bags. Had the bags been used as secondary packing then the answer is correct
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is Aadhar PAN linking required for opening bank account?
- Applicability
- Where to show the RCM on Rent paid to unregistered landlord
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Application of 115BAC
- Gst Sales of FY 2023-24
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- TDS NUMBER SURRENDER
- Legal heir raised refund , but refund issued to the closed account of deceased.
- RCM - commercial rent paid to URP under GST
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
