Accounting treatment of Share purchases and GST
This query is : Resolved
28 September 2020
Dear Sir, When we purchase and sales of shares of listed company from brokers. Brokers issue a contract notes/bill for purchase/sales of shares. In this contract note included name of company, rate of shares & net purchase/sales amount and brokerage & expenses of stock exchanges/transaction charges such as STT, Turnover charges, sebi charges & GST Exps. My query is what is accounting treatment as per income tax & how to pass the entry in accounts. The cost included in purchase of stocks, brokerage & expenses of stock exchanges/transaction charges such as STT, Turnover charges, sebi charges & GST Exps or only stocks purchase Exps. Please explain in above issue. Thanks & Regards
Manoj
Manoj
28 September 2020
The cost included in purchase of stocks, brokerage & expenses of stock exchanges/transaction charges such as STT, Turnover charges, sebi charges & GST Exps.
While calculation of capital gains on sale all these expenses are considered as cost.
While calculation of capital gains on sale all these expenses are considered as cost.
12 October 2020
It all depends on how are you treating the transaction.
If you will show capital gains in ITR, you should value you stocks inclusive of brokerage & GST.
If you will show trading of shares as your business, then pass entries of brokerages and other cost seperately in tally.
If you will show capital gains in ITR, you should value you stocks inclusive of brokerage & GST.
If you will show trading of shares as your business, then pass entries of brokerages and other cost seperately in tally.
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