Calculation of turnover & tax rate
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 February 2012
I am trading in Commodity Market via MCX Exchange on daily basis. I would be greatful if my query regarding rate of Tax applicable in my case, whether it is treated as Business Income or Speculative Income. My second question is which figure should be taken as total turnover for the TAX Audit purpose only either it is sale value of all the contracts or total of profit & loss on settelment of contracts or margin involved on daily basis.
Thanks & regards
Thanks & regards
25 February 2012
Reply to your First Query-
.
Profit or loss from trading in commodity future is treated as speculation profit or loss because it is not covered in the exceptions of the section 43(5)which covers only derivatives referred to in clause [(ac)] of section 2 of the Securities Contracts Regulation Act, 1956.
.
Commodity future is regulated by Forward Market Commission (FMC) under Forward Contracts (Regulation) Act, 1952.
.
However if commodity future is booked to guard against loss through future price fluctuations in respect of contracts for actual delivery of goods manufactured or sold, then it will not treated as speculation.
.
.
Profit or loss from trading in commodity future is treated as speculation profit or loss because it is not covered in the exceptions of the section 43(5)which covers only derivatives referred to in clause [(ac)] of section 2 of the Securities Contracts Regulation Act, 1956.
.
Commodity future is regulated by Forward Market Commission (FMC) under Forward Contracts (Regulation) Act, 1952.
.
However if commodity future is booked to guard against loss through future price fluctuations in respect of contracts for actual delivery of goods manufactured or sold, then it will not treated as speculation.
.
25 February 2012
Reply to the 2nd query-
.
Margin does not form part of turnover.
Contract-wise profit or loss (ignoring (-) sign for loss) will be added in respect to all the contracts settled during the FY will be considered for the calculation of Turnover for the purpose of S. 44AB.
.
.
Margin does not form part of turnover.
Contract-wise profit or loss (ignoring (-) sign for loss) will be added in respect to all the contracts settled during the FY will be considered for the calculation of Turnover for the purpose of S. 44AB.
.
25 February 2012
Reply to the 2nd query-
.
Margin does not form part of turnover.
Contract-wise profit or loss (ignoring (-) sign for loss) will be added in respect to all the contracts settled during the FY will be considered for the calculation of Turnover for the purpose of S. 44AB.
.
.
Margin does not form part of turnover.
Contract-wise profit or loss (ignoring (-) sign for loss) will be added in respect to all the contracts settled during the FY will be considered for the calculation of Turnover for the purpose of S. 44AB.
.
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