we have a client, who is dealing in car stereos and all. they record the purchase of "CABLES" and "CORDS" under the head "purchases". but they are not taking the input credit of these purchases coz they say that since these are not the purchases that are directly related to their business of car stereos, they cannot claim the input credit. but i m of the opinion that since car stereos and dvd players etc cannot work without cables and dc cords, they should treat it as direct purchases and take its credit. so what treatment should be done??
and if these are not directly related to their business, should we record them as purchases???
CAclubindia
