Income tax for manufacturer

IT is calculated on the profit at applicable rates

There are different methods of accounting such as cost accounting, financial accounting etc. Under financial accounting the business entity normally follows accounting method suitable to comply income tax rules / Act except for companies by arriving net profit for the financial year.

The information of selling price and cost of the product are useful for cost accounting but not for arriving tax profit.

Again the status of the business entity needs to be known to arrive rate of tax and income tax slabs etc.