B-BBEE EXEMPTED MICRO ENTERPRISE on Gross Profit instead of Turnover - WHEN?

[J7J]

Hi all,

Word is going round that there are instances where you can evaluate whether a business qualifies as a exempted micro enterprise based on gross profit (ie. Turnover less Cost of Sales) instead of only turnover - specifically when the gross profit margin is lower (instance where goods that are sold have a high cost - like motor cars)...

Anyone with any info on this or suggestion where I can read up on it?

Thank you!

[Andromeda]

The Act makes no provision for gross profit, only turnover.