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Whether commodity loss to be taken as speculation profit or

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Aakash Chowdhury

ipcc grp passed

27 Points Posted on 03 March 2014

One of my client has commodity loss from "Kaycee Commodity Pvt Ltd" & "Ratnabali Commodities Pvt ltd". But my problem is whether to take them as speculation loss or non speculation loss because as per the new amendments commodities profit or loss is no longer speculative income.

Though they satisfy the condition of commodity derivative & eligible transaction but I am not sure whether they satisfy the condition of "recognised association"

Replies (1)

SHASHANK AGARWAL

self employed

114 Points Posted on 03 March 2014

COMMODITY PROFIT OR LOSS IS NOT A SPECULATIVE PROFIT OR LOSS AS LONG AS CARRIED OUT IN A RECOGNISED ASSOCIATION.

NOW, RECOGNISED ASSOCIATION MEANS A RECOGNISED ASSOCIATION NOTIFIED BY THE CENTRAL GOVERNMENT FOR THIS PURPOSE. "NATIONAL COMMODITY AND DERIVATIVE EXCHANGE LIMITED, BOMBAY AND UNIVERSAL COMMODITY EXCHANGE LIMITED, BOMBAY AND MULTI COMMODITY EXCHANGE OF INDIA LIMITED, MUMBAI HAVE BEEN NOTIFIED AS RECOGNISED ASSOCIATIONS"

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