17 November 2015
Hi how to compute turnover for maintenance of books of accounts in case of speculation business??
what is the limit beyond which we have to maintain books for speculation business???
Thanks in advance.
17 November 2015
01. As per ICAI Gudieliness In the case of an assesee undertaking speculative transactions there can be both positive and negative differences arising by settlement of various such contracts during the year. Each transaction resulting into whether a positive or negative difference is an independent transaction. Accordingly, the aggregate of both positive and negative differences is to be considered as the turnover of such transactions.
02. For limit Sec 44AA is also applicable to specualtion business for maintaining of books of accounts hence if I. Person carrying on business or profession if his total income exceeds Rs.1,20,000 or his total Turnover or Gross Receipts in the business or profession exceeds Rs.10,00,000 in any of the 3 years immediately preceding the previous year. II.Where the business is newly setup, if his total income is likely to exceed Rs.1,20,000 or his total Turnover, Gross Receipts likely to exceed Rs.10,00,000. III.Where the profits and gains are deemed to be the profits and gains of the assessee u/s 44AE or 44AD or 44BB or 44BBB and assessee has claimed his income to be lower than the profits and gains so deemed to be the profits and gains of his business.
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