Re. Taxation of Fututre & Options.
This query is : Resolved
22 July 2008
I want to know the accounting treatment of F & O transaction. As i hv read in Expert Query that difference of receivables & Payable regarded as Turnover.
Then, How it should incorporate in Books of accounts.
Then, How it should incorporate in Books of accounts.
22 July 2008
The following accounts are to be opened in the ledger:
Mark to Market A/c(Margin A/c)
Profit/Loss in derivatives
Broker-Trading A/C
All sums paid or received on account of margins will be routed thru M to M a/c
All profit/Loss at the settlement or closure of contract will be routed through Proft/loss in derivatives
Broker's Personal a/c will be used as a normal party a/c
Mark to Market A/c(Margin A/c)
Profit/Loss in derivatives
Broker-Trading A/C
All sums paid or received on account of margins will be routed thru M to M a/c
All profit/Loss at the settlement or closure of contract will be routed through Proft/loss in derivatives
Broker's Personal a/c will be used as a normal party a/c
22 July 2008
THAT MEANS.... mARGING a/C WILL COME UNDER SALES (& CONSTITUTES TURNOVER )
22 July 2008
No, margin account will not a nominal account. It is the Profit/loss in Derivatives wherefrom we can sum up the positive difference(Profit) and negative difference(Loss) to find out the figure of Turnover for the purpose of Tax Audit u/s 44AB.
22 July 2008
In further reply to query asked in comments sent to me you are hereby requested to refer to the queries answered by me at S.No.31, 81, 182 and 186. I hope u will get the reply.
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