transactions in commodities

This query is : Open

vandana (Querist)
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29 July 2009 If a trader in commodities with actual investment of Rs 1,00,000/- but with a turnover of Rs 1,00,00,000/- and loss of Rs 5,00,000/-. Will he have to get his books of accounts audited?
If not how will the sales be accounted for?

P B Srivathsan

P B Srivathsan (Expert)
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04 August 2009 If the turnover is 1 crore, then tax audit will apply. I hope I am correct in my understanding of the the question.

P B Srivathsan

P B Srivathsan (Expert)
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04 August 2009 Are you referring to a private limited company and applicability of CARO? In that case, if paid up capital and reserves is less than 50 lacs and turnover is less than 5 crores and there is no public accepted, then CARO is not applicable.

For all public limited, CARO is applicable.

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vandana

vandana (Querist)
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08 August 2009 Trader in commodities here refers to an investor who makes intraday transactions in commodities like some do in shares.