determination of scrap
This query is : Resolved
yash doshi
(Querist)
08 July 2008
what is the definition of scrap???????
how should we determine that any material lying in the godown at the end of the year is scrap or closing stock???
suppose that i m a dealer in cloth, i purchase 100mm cloth out of which i use 95mm for production and i want to consider the other 5mm as scrap but the income tax officer says that it should be considered as closing stock of raw material
so what should i consider the 5 mm cloth (scrap or closing stock of raw material)????
how should we determine that any material lying in the godown at the end of the year is scrap or closing stock???
suppose that i m a dealer in cloth, i purchase 100mm cloth out of which i use 95mm for production and i want to consider the other 5mm as scrap but the income tax officer says that it should be considered as closing stock of raw material
so what should i consider the 5 mm cloth (scrap or closing stock of raw material)????
S.Srinivasaraghavan
(Expert)
08 July 2008
Things that can not be used for the intended purpose, but may have material value.
You have to determine whether that small piece falls within the above definition, and not the Income tax officer.
You have to determine whether that small piece falls within the above definition, and not the Income tax officer.
yash doshi
(Querist)
08 July 2008
can anyone give me any case law on this
or are there any guidelines specified for the purpose of determination of scrap as a % of input
and who has the power to determine that the material lying in the godown is scrap or closing stock (company or the ITO)
or are there any guidelines specified for the purpose of determination of scrap as a % of input
and who has the power to determine that the material lying in the godown is scrap or closing stock (company or the ITO)
08 July 2008
Company has the power to determine that the material lying in the godown is scrap or closing stock.
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