Computing turnover

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sabharinath (Querist)

11 July 2016 One of my clients is doing online share trading..... I heard that the turnover to be calculated for these transactions is the difference between the purchase and sale value of the scrips.... The turnover is the net of both the profit and loss on sale of these scrips.... I can't get this point exactly.... Profits are positive figures and loss are negative figures. While computing, should we ignore the negative figures and add both? I my client's case the profit figure is 1,43,650.52. The negative loss figure is -1,66,336.67. So is the turnover -22686.15 or is it 3,09,987.19 ignoring the negative sign? Pls clarify me on this..... Moreover, by IT definiton, this is a speculative business. But as per Securities Exchange definition, Since it is carried out on computer through a recognised stock exchange, it is non-speculative.... Which should I follow?

Shubham Gupta

Shubham Gupta (Expert)

11 July 2016 it will be sum of profit and losses(without considering them negative)
so your turnover will be 309987

sabharinath

sabharinath (Querist)

12 July 2016 Thanks for the reply sir.... Is it speculative or non-speculative since it is carried on a computer through a recognised stock exchange?

Shubham Gupta

Shubham Gupta (Expert)

12 July 2016 if there is delivery then it will non specultive, if it is set off intra day then speculative

sabharinath

sabharinath (Querist)

12 July 2016 Thank U sir..... One more query.... In the above case, the turnover is 3,09,987.... So, how can we compute the profit or loss? Is it the difference between the positive and negative figures? i.e. 1,43,650 (-) 1,66,336. ie. a loss of Rs.22,686? or is there any other way?

Shubham Gupta

Shubham Gupta (Expert)

12 July 2016 yes, you are right loss will be 22686

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sabharinath

sabharinath (Querist)

12 July 2016 Thank u very much Sir

sabharinath

sabharinath (Querist)

12 July 2016 O Sorry sir..... I almost forgot.... In that case, it is a loss on turnover of Rs.3,09,987.... So is it a 44AB case?

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