Money lending on gold
This query is : Resolved
06 April 2012
Dear Sir/Madam,
!! URGENT Reply Required !!
I just want to get an expert advise on following issue:-
1] If a person is carring business of Sell & Purchase Of Gold jwellery and Money lending on hypothecation of gold, then how his turnover is deceded for Audit purpose?
2] If Person is only carring bussiness of Lending Money on Hypothecation of gold then , when he will be eligible for Tax Audit?
!! URGENT Reply Required !!
I just want to get an expert advise on following issue:-
1] If a person is carring business of Sell & Purchase Of Gold jwellery and Money lending on hypothecation of gold, then how his turnover is deceded for Audit purpose?
2] If Person is only carring bussiness of Lending Money on Hypothecation of gold then , when he will be eligible for Tax Audit?
12 May 2012
Hi,
As far as Turnover is required to be calculated in first case it will be the total of gold sold by the person because gold will be treated as stock in trade and income from hypothecation will be taken as indirect income in P&L account.
in case 2 the business being carried on will generate only interest income and this will be treated as Direct income and if Such gross receipts exceeds the maximum limit for Tax audit then Tax audit will be mandatorily applicable.
CA.Richi Saxena
As far as Turnover is required to be calculated in first case it will be the total of gold sold by the person because gold will be treated as stock in trade and income from hypothecation will be taken as indirect income in P&L account.
in case 2 the business being carried on will generate only interest income and this will be treated as Direct income and if Such gross receipts exceeds the maximum limit for Tax audit then Tax audit will be mandatorily applicable.
CA.Richi Saxena
Message likes :
1 times
13 May 2012
Dear Richi,
Thank you for clarification. But doubts are still there i.e. in 2nd case which receipts will be clubbed for turnover purpose i.e. Money given on gold leding or interest received by the money lender ?
Thank you for clarification. But doubts are still there i.e. in 2nd case which receipts will be clubbed for turnover purpose i.e. Money given on gold leding or interest received by the money lender ?
13 May 2012
In 2nd case Interest on Gold loan will be taken as Turnover And money given on Gold lending will not be taken for such purposes because Turnover includes only receipts made by a person and gold lending is not any sort of Receipt.
CA.Richi Saxena
CA.Richi Saxena
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Post Office RD Interest
- Building and other construction workers welfare cess act 1996
- ITR validation error - Balance sheet is not filled
- Bank Accounts in Balance Sheet for ITR 3
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Annual return of gst limit
- TDS ON CASH WITHDRAWALS...
- Eway bill for machinery reparing
- Form 10BD Filling
- Error whiling application of GST REFUND (ANNEXURE B)
- Change the gender in the registration of icai
- Lift replacement entries in housing society
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
