rohan (CHARTERED ACCOUNTANT CS FINAL) (83 Points)
18 December 2011DEAR ALL,
MY CLIENTS GP RATIO HAVE DECLINED TO 3% FORM PAST 8%, ITO WANTS TO CONSIDER IT AT 8% HOW CAN I JUSTIFY THE FALLING GP RATIO OTHER THAN GIVING THE COMPITITION IN MARKET AS EXPLANATION...
CAN U PROVIDE ME WITH CASE LAW WHERE LOW GP RATIO IS ACCEPTED BY ITO...
IN WHAT CASES CAN AN ITO ACCEPT LOW GP RATIO?..
kanagaraj
(CHARTERED ACCOUNTANT)
(793 Points)
Replied 18 December 2011
Without substantiating your low GP you cannot win. Ask your client why it was lower compared to py and explain the same to the AOP
regards
CAclubindia
