S
saksham
Member
How does an upward revaluation of inventories increase pretty tax profit?
Ref q 8.8 subpart e.
Please explain
Ref q 8.8 subpart e.
Please explain
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A
Aditya mohan mathur
Member
I guess Upward revaluation of inventory held refers to the increase in value of closing stock.
Since we subtract the value of closing stock in the ' cost of sales' part, so it getting subtracted twice and therefore getting added in our calculation of profit.
So it is resulting in increase in profit
Since we subtract the value of closing stock in the ' cost of sales' part, so it getting subtracted twice and therefore getting added in our calculation of profit.
So it is resulting in increase in profit
This sounds like a reasonable explanation to me 