share working

brockerge a/c different ,clubbing other expense like service tax and demat charges , show stt different if applicable

1. SHARES PURCHASES AS AN INVESTMENT

If your enterprise has purchased shares as an Investment, (and not trading in shares), then your cost of investments shall be determined as per AS 13 - Accounting of Investments.

As per para 28 of the above Standard,  the cost of an investment should include acquisition charges such as brokerage, fees and duties. 

The service Tax paid on brokerage may also be deemed to be a Duty on the share purchase transaction. Hence the cost of investment in your books of accounts shall be:

= (Price of Share + Brokerage + ST on Brokerage + STT paid).

2. SHARES PURCHASED AS PART OF TRADING ACTIVITY

If you are engaged in trading of shares, then AS 13 shall not apply to your enterprise and in which case, you may have to disclose the Brokerage and ST on Brokerage separately as they are DIRECT EXPENSES pertaining to your business of trading.

-contrary views invited-