F&O turnover and purchases

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This discussion clarifies F&O turnover and purchases, explaining that turnover represents the sum of profit and loss values. It details how profit is calculated by subtracting purchases from turnover. The presumptive tax scheme, which requires a 6% profit on turnover, is also discussed, noting its applicability to traders who opt in, particularly small businesses.

ghosh

ghosh (Querist)

14 August 2023 what is a F&O turnover and purchases , and how turnover - purchases = profit arrived at?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 August 2023 The turnover is sum of profit and loss value. You have to show 6% profit under presumptive scheme on the above turnover.

ghosh

ghosh (Querist)

15 August 2023 Presumptive scheme is applicable to one who opt for it. Obliviously one who has more profit than 6% and thinks that is the case year after year opt for it. or I think basically to encourage small trader to file return with6% . Then how can you say that?
and also the question was what is purchase in F&O?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 August 2023 The turnover is the purchase price and the selling price is turnover less loss.
Purchase price less selling price is the profit.

ghosh

ghosh (Querist)

16 August 2023 the selling price is turnover less selling price ? it is like A= B-A or 2A=B.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 August 2023 Small correction selling price is turnover less loss.

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