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What expenses can be added to cost of acquisition?

Tax queries 276 views 2 replies

On every purchase of shares from recognized stock exchange  the following expenses incur

  1. Securities transaction tax
  2. Stock exchange transaction charge
  3. SEBI transaction charge
  4. Stamp duty
  5. Brokerage
  6. Service tax

Out the above 6 charges levied on purchase of shares which all can be added to the purchase cost; for cacculation of Short-term capital gains.

Do not post opinion. Please site statutory source along with your answer.

 

Replies (2)

above expense are indirect expense which incured 

for purchase of stock it should be shown different in profit and lost a/c

and purchase of cost shown in the balancesheet invesement side 

For the calculation of COA out of above 6 expenses onle STT paid is not allowed to add in COA. As per fifth proviso of sec 48 it is not allowed to be added for computing COA.

I hope your query is resolved now.


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