Trading vs manufacture
This query is : Resolved
26 March 2012
Dear All,
One of my client engaged in purchase and sale of spare parts for automation related instruments/machines.
They treat it as manufacture, but i suggested thst it should be treated as trading and shown in Trading and P&L A/c.
They do not agree to my comment, Who is correct.?
Also they argue saying what is wrong in treating it as manufacture.
Can u quote relevant case laws / sections in support of ur answer?
One of my client engaged in purchase and sale of spare parts for automation related instruments/machines.
They treat it as manufacture, but i suggested thst it should be treated as trading and shown in Trading and P&L A/c.
They do not agree to my comment, Who is correct.?
Also they argue saying what is wrong in treating it as manufacture.
Can u quote relevant case laws / sections in support of ur answer?
26 March 2012
Dear Sir,
what is manufacturing is even defined by Income tax Act -1961 under section 2(22AAA).
If the Activity is treated as Manufacturing it invited Central Excise levy if the turnover is over Rs 1.5 Cr
Please try to make them understand the meaning of Trading & Manufacturing.
what is manufacturing is even defined by Income tax Act -1961 under section 2(22AAA).
If the Activity is treated as Manufacturing it invited Central Excise levy if the turnover is over Rs 1.5 Cr
Please try to make them understand the meaning of Trading & Manufacturing.
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