A company is dealing in trading of agri commodity, say caster oil. They purchase it at low rates, stores in godowns for many months or even 1 year, and sell when they get good price.
The company also does day to day Future trading in the same commodities, their bills are settled daily and payments made or received from Broking house like Marwadi,etc.
They are claiming ITC on the bills raised by Broking house.
Q:1: Is ITC admissible on broking house invoices, when both are different business activities?
Q 2: Can a plea be made that Future trading business is hedged by actual stock and so both are connected ?
Expert opinion please.
CAclubindia
