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<h1>Profit Rate Applicable to Gross Receipts, Excluding Department's Material Cost.</h1> The High Court of Jammu and Kashmir held that the profit rate should be applied to gross receipts, including deposits retained by the M.E.S. department ... Business The High Court of Jammu and Kashmir ruled that the profit rate should be applied to gross receipts, not just cash receipts. The court held that deposits retained by the M.E.S. department should be included in total receipts for profit calculation, but not the cost of materials supplied by the department. The decision was based on a previous Supreme Court ruling.