10 April 2021
DEAR SIR / MADAM, My turnover is high when compared to previous year. The Gross Profit value more than previous year. But the Percentage of margin is getting low when compared with previous FY. My doubt is gross profit arrived with value or percentage of margin value. Previous GP % is 12.36% but in this FY GP % 11.00 but the Gross Profit value is high. please explain which is important Gross profit value or percentage value.
11 April 2021
As the business grows, the Gross Profit will increase. However, generally the Gross margin % may decrease initially. In order to keep the margin constant, business may have to find competitive advantage and create Moats in order to increase gross margin with increase in Turnover.
13 April 2021
This depends on number of circumstances. Margins may decrease due to increase in Input Costs, direct expenses, misclassification of expenses etc You will have to find the reason.
Acceptability of reduction in GP depends on where you are presenting your financial statements to investors or bankers. You need to explain the reason for reduction in GP Ratio and steps you are taking for improving the ratio.
23 May 2021
Dear sir, What is the procedures to be followed to takeover an existing father business by son in GST and Income tax . Father Death by natural death and his son want to takeover his business by same name and same GST Number. Kindly guide me sir
23 May 2021
Same business name okay. ITR to be filed in son's PAN. Transfer license with local authorities in son's name. Apply for new GST registration in son's name with his PAN number. Transfer ITC through ITC 02 to son's GST
GST registration is PAN based it can't be continued.
21 July 2021
Dear Sir, 1.As Related with my previous query, I have taken New GST in son's name(SAME BUSINESS NAME).Now can i transfer the closing stock value by billing to his son new business after the gst certificate received date? 2.His father business Bank current account are freezed now sir.But Supplier and Debtors are receiving payment in the SAME NAME OF SON'S BUSINESS. Debtors giving their pending payment through by cheque only in business name not giving in personal name.In that situation, father business and son's business are in the same name no problem. Now can i make draft a cheque to son's bank current account or somthing else.Please guide me sir
CAclubindia
