Queery related to net profit ratio.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 October 2012
Hi..
I've a doubt in Net Profit Ratio.
What we've take in Denominator in Net Profit Ratio if my Income is coming from sales or any other Income as well.
Suppose,
1st Case,My sales is ₹10,000 & Indirect Income is ₹ 2,000 & Net Profit is ₹4,000 then what i've take in Denominator Only sales or Sales + Indirect Income.
2nd case, If Major Part of my Income is Coming from Commission Income.
Suppose, My Commission Income is ₹14,00,000 & My sales is ₹50,000 & My Net Profit is ₹2,00,000 then suggest me what i've take in Denominator Sales or Sales + Commission Income or Only Commission Income.
I've a doubt in Net Profit Ratio.
What we've take in Denominator in Net Profit Ratio if my Income is coming from sales or any other Income as well.
Suppose,
1st Case,My sales is ₹10,000 & Indirect Income is ₹ 2,000 & Net Profit is ₹4,000 then what i've take in Denominator Only sales or Sales + Indirect Income.
2nd case, If Major Part of my Income is Coming from Commission Income.
Suppose, My Commission Income is ₹14,00,000 & My sales is ₹50,000 & My Net Profit is ₹2,00,000 then suggest me what i've take in Denominator Sales or Sales + Commission Income or Only Commission Income.
04 October 2012
There is no hard and fast rules for calculating ratio's for the purpose of tax audit for want of definitions for turn over, net profit etc. Therefore, ICAI suggests to enclose working of all these factors while calculating ratios for tax audit purposes.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Amount transferred in HUF Account
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Working on Gold wastage during Melting of old gold jewellery
- IMS (import of goods) ITC related
- How do you manage client document collection and follow-ups in your CA/CS practice?
- Royalty payments to the Mining Department for procurement of murum - GST input
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
