banner_ad

GP margin

This query is : Open 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
24 September 2010 Sales of a proprietory concern has increased from 35 lakh to 65 lakh and corresponding Gp margin has declined from 6.4% to 4.4%.Assessee is wholesaler in cloth.Whether decline in GP margin is justified?

Also tell whether significant accounting policies form part of audit report u/s 44AB
Profile Image

Thrissurkkaran Ishtan

Profile Image

Thrissurkkaran Ishtan (Expert)
27 September 2010 It is justified if:

1. There is a reduction is selling price (to gain more sales), sales mix has changed with lower GP items voluming more high GP items, discount given to gather sales, etc.

2. Cost of input has gone up which is not shifted to the customer, or higher cost items are sold more than lower cost items.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details