works contract: adding GP on purchases method
Ram
(Querist) 21 June 2010
This query is : Open
dear sir,
my clients are dealers in sales and service of motor cars. in the case of painting of cars they adopt a method of adding 25% Gross profit to purchases to arrive at the taxable turnover. the officer claim the method is not acceptable.
i had gone through a case long back where it was held by court that such method of adding GP to purchases in works contract was acceptable. but i have not noted the citation. any body having the same pls post it at the earliest. with that decided case i can make my case stronger
regards
ram
