Low gross profit ratio as compared to p.y.

rohan (CHARTERED ACCOUNTANT CS FINAL)   (83 Points)

18 December 2011  

DEAR ALL,

MY CLIENTS GP RATIO HAVE DECLINED TO 3% FORM PAST 8%, ITO WANTS TO CONSIDER IT AT 8% HOW CAN I JUSTIFY THE FALLING GP RATIO OTHER THAN GIVING THE COMPITITION IN MARKET AS EXPLANATION...

CAN U PROVIDE ME WITH CASE LAW WHERE  LOW GP RATIO IS ACCEPTED BY ITO...

IN WHAT CASES CAN AN ITO ACCEPT LOW GP RATIO?..