Derivative turnover

This query is : Resolved

ritesh (Querist)
Follow

22 July 2013 hello,
iknow that the difference of contract value are to be taken as the future and options turnover add the negatives difference also.

my query is:

1.what if the future contract is not expired or squared off on 31/3/2013. what should be done in such case.

2. in option the premium received is only considered for turnover. so what is the treatment of premium paid to buy a call.

i hope some can clear my query

thank you

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

22 July 2013 The contract would have expired till the "calculation of turnover" gets completed.
so take its loss or profit in account.
.

Let Premium received be " Sales" then what would be Premium Paid ? and by this logic , we know that purchases are not considered as turnover for Section 44AB.
.

Message likes : 1 times

ritesh

ritesh (Querist)
Follow

29 July 2013 I have one doubt. sum of positive and negative diffrence of future trades is the turnover.

Shouldn't we subtract twice the amount of losses to correctly arrive at GP, because while originally calculating the turnover, we had removed the minus sign on losses.

Example:
Trade 1: -5,000
Trade 2: +10,000
Trade 3: -2,000

Thus turnover = 17,000. GP is really 3,000. To arrive at GP correctly, we need to calculate: 17,000 - 2*(5,000+2,000).

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Anurag Sharma

Shraddha Pangam

J.Vijai

sachingurav

Tanishka Khandelwal

Subscribe Now

Derivative turnover

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

CA Final

Manager- Finance and Compliance

Accountant

GST CONSULTANCY

Senior Executive