Audit in case of transaction in commodity market

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Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2012 Dear Sir,
Please advise me whether Transaction done in Commodity Market like in gold & silver is liable for Audit?
e.g. total purchase done in silver lot for Rs.1,05,00,000/- & Sale made in silver lot Rs.1,07,00,000/-. So net profit is Rs.2,00,000/-. Now my question is whether i need to do tax audit for the same as turnover is above rs.1crore. kindly advice me.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

04 October 2012 For the purpose of section 44AB for the given case turnover considers Gross Profit + Gross loss. In your case assume there no loss transaction at any time during the year turnover is Rs.200000 only [i.e gross profit(200000)+gross loss(0)]. It is clarified by the 44AB guidance notes issued by the ICAI. Many of having doubt about this same query and case. I also recently i.e one month back fight against the same case because my client case is also same as you and referred many of articles etc... consulted many auditors at finally after 15 days i get clarification and confirmed. However if you required for your clarification please send your mail ID i will send the 44AB guidance notes issued by the ICAI.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2012 My Email id is nj7shah@yahoo.co.in
Also, thank you very much.
Regards

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

04 October 2012 I send the mail Please confirm it.

OM SAI SRI SAI JAI JAI SAI

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