Mark to market
This query is : Resolved
Sanjeev Agarwal
(Querist)
02 January 2015
Can a share of listed company be carried at market rate if market rate is lower than purchase price in the Balance Sheet?
If the trade in listed share is suspended for whatever reason, can the share be carried at last traded price in B/s if that price was lower than purchase price?
Would such notional loss be treated as Short/Long term Capital Loss and be set off from other Short/Long term capital gain?
If the trade in listed share is suspended for whatever reason, can the share be carried at last traded price in B/s if that price was lower than purchase price?
Would such notional loss be treated as Short/Long term Capital Loss and be set off from other Short/Long term capital gain?
Amol S Joglekar
(Expert)
02 January 2015
01. On conservative principle, the accountancy should take care of MARK to MARKET
02. If the suspension is permanent....then NO... But if the suspension is for a predesignated period..(May be by SEBI or NSE, BSE...whatever)the last traded price can be used.
03. Income tax does not allow such mark to market LOSSes
02. If the suspension is permanent....then NO... But if the suspension is for a predesignated period..(May be by SEBI or NSE, BSE...whatever)the last traded price can be used.
03. Income tax does not allow such mark to market LOSSes
Rupesh Jain
(Expert)
02 January 2015
you have to show the share in books at cost not the market price.
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