Trading vs manufacture
This query is : Resolved
26 March 2012
Dear All,
One of my client engaged in purchase and sale of spare parts for automation related instruments/machines.
They treat it as manufacture, but i suggested thst it should be treated as trading and shown in Trading and P&L A/c.
They do not agree to my comment, Who is correct.?
Also they argue saying what is wrong in treating it as manufacture.
Can u quote relevant case laws / sections in support of ur answer?
One of my client engaged in purchase and sale of spare parts for automation related instruments/machines.
They treat it as manufacture, but i suggested thst it should be treated as trading and shown in Trading and P&L A/c.
They do not agree to my comment, Who is correct.?
Also they argue saying what is wrong in treating it as manufacture.
Can u quote relevant case laws / sections in support of ur answer?
26 March 2012
Dear Sir,
what is manufacturing is even defined by Income tax Act -1961 under section 2(22AAA).
If the Activity is treated as Manufacturing it invited Central Excise levy if the turnover is over Rs 1.5 Cr
Please try to make them understand the meaning of Trading & Manufacturing.
what is manufacturing is even defined by Income tax Act -1961 under section 2(22AAA).
If the Activity is treated as Manufacturing it invited Central Excise levy if the turnover is over Rs 1.5 Cr
Please try to make them understand the meaning of Trading & Manufacturing.
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
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Payment of bonus act - notice pay recovery
- MIS MATCH OF INVOICE NUMBER
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
