Commodities Transaction Tax

Section - 118 - Value of taxable commodities transaction

5aValue of taxable commodities transaction.

118. The value of taxable commodities transaction referred to in section 117,—

  (a) in the case of a taxable commodities transaction relating to a 6[commodity derivative or commodity derivative based on prices or indices of prices of commodity derivatives], shall be the price at which the 6[commodity derivative or commodity derivative based on prices or indices of prices of commodity derivatives] is traded;

  (b) in the case of a taxable commodities transaction relating to an option on commodity derivative 7[or option in goods], shall be—

 (i) the option premium, in respect of transaction at 8[serial numbers 3 and 4] of the Table in section 117;

 (ii) the settlement price, in respect of transaction at 9[serial numbers 5 and 6] of the Table in section 117;]

  7[(iii) the difference between the settlement price and the strike price, in respect of transaction at serial number 7 of the Table in section 117.]

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