Stt

Be clear with the difference between accounting and taxation...

In Accounting, STT is an expense which you have to debit to Investments Account.

In taxation, STT is an expense which cannot be claimed so u/s 40. It too don't deny its very nature of expense. It will just say that is a disallowable expense.

thanx for info.

It means In accounting, STT is charged to profit & loss A/c, right?

No, You seem to have misinterpreted my words.

It will go into investment account and there by added to the cost or reduced from sale consideration. Only profit or loss on sale of investments will come into Profit and Loss account.

Clear???

ok then why it was not included in cost of shares in statement of Portfolio company?

even my boss told me to charge STT to p/l account.......

 For accounting purpose, there is no need to distinguish between purchase value and STT. Whatever you have paid will be cost and what ever you received is sale consideration. 

Portfolio managers have to serve their statements to its customers both for income tax and accounting purpose.So they have to show that seperately.

Once again be clear between accounting and taxation......