Computing turnover
This query is : Open
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?
11 July 2016
it will be sum of profit and losses(without considering them negative)
so your turnover will be 309987
so your turnover will be 309987
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?
12 July 2016
if there is delivery then it will non specultive, if it is set off intra day then speculative
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?
12 July 2016
yes, you are right loss will be 22686
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12 July 2016
Thank u very much Sir
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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