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?
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?
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