In a Shares regular Trading Business (not falls under capital gain method) - so far we are following the treatment of STT as below:
Securities Transaction Tax (STT) deducted by the broker was added to the Purchase Price of a Share to arrive at the Total Price of Purchase and the STT was subtracted from the Sale Price of a Share to arrive at the Total Price of Sale.
Now our consultant suggests that the above procedure is not valid and suggested the following method:
STT should be treated as other expenses (such as other business expenses) are treated while computing Profit/ Loss from the business of Trading in Shares.
Pls suggest the appropriate method by mentioning any relvant section / rules etc.
CAclubindia
