Karan Batra
(Creator: TheProTalks)
(2325 Points)
Replied 22 June 2017
Classification appropriate to the person means which category of inventories do you or your company thinks is best fit to that kind of inventory e.g. AC can be held as Furniture and fittings or as Plant and machinery(General) as per the Income tax act, and if there is no clarification regarding it it’s your opinion to consider it either of the two. However, the point to note here is as follows to check the valuation of inventories whether to do on cost or NRV shall be done category wise.
CAclubindia
