Arbitrage commodities

IN A PARICULAR TRANSACTION A COMMODITY IS PURCASED FROM NSEL(Regd. Exchange for commodities trade) PURCHASE AND SALE ARE DONE IN A SINGLE CONTRACT BUT THE DELIVERY IS DEFERRED BETWEEN PURCHASE AND SALES. WE GET ALL THE TITLE DOCUMENTS.

DOES IT CONSTITUE SPECULATION OR IT HAS TO BE TREARTED AS NORMAL PURCHASE AND SALE?

IF IT IS SPECULATION THEN WHAT IS THE TAXABLE VALUE?

IF IT IS NORMAL PURCHASE AND SALE THEN DO WE HAVE TO BOOK ONLY PROFIT OR TOTAL TURNOVER i.e. PURCHAE AND SALE. WILL IT BE LIABLE TO TAX AUDIT????

Reply asap....

 

 

Replies (1)

1)  If u are Trading in Comodities That is Called Business Income.

2)  IT IS NOT A SPECULATION, THE TAXABLE VALUE IS NET VALUE OF GAIN/LOSS ON SALE OF COMODITIES

3) ONLY GAIN/LOSS WILL BE DEBIT OR CREDIT IN YOUR BOOKS.

4) IF YOUR TURONOVER EXCED 60 LAC THAN YOU HAVE TO LIBALE FOR TAX AUDIT.

REGARDS

GULSHAN

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