22 July 2008
hi, i have traded during fy 2007-2008.i have intraday and delievery based transactions,i am a trader ,so its my business income,can anyone tell me how to prepare accounts for the same and is there any file uploaded on this site?
22 July 2008
You should maintain the following ledgers Accounts: Income from Jobbing; To a/c for jobbing P & L Purchases:Delivery based purchases Sales:Delivery based sales Broker's Personal A/c-Trading Broker's Personal A/c-Margin All transactions of sale, purchase or jobbing settled otherwise taking the deliveries shoul be routed through Broker's Trading a/c And transactions related to Margin through Margin A/c
22 July 2008
Speculative Transaction: - In a speculative transaction, the contract for sale or purchase is settled otherwise than by actual delivery or transfer of the commodity or scrips. The contract is squared up by paying out the differences which may be positive or negative. In such transactions, although the contract notes are issued for the full value of the purchased / sold scrip, the entries are made in the books of account only for the differences. The aggregate of both positive and negative differences is to be treated as “turnover” for section 44AB purposes. This view of ICAI does not appear to be the correct view – see Growmore Exports Ltd.v.Asstt.CIT [2001] 78 ITD 95/72 TTJ691 (Mum.).
Derivatives, futures and options: - In case of such transactions, the following shall be included in ‘turnover’ for section 44AB purposes: (i) total of favourable and unfavourable differences,(ii) premium received on sale of options; and (iii) difference in respect of reverse trades entered. Growmore Exports Ltd.v.Asstt.CIT [2001] 78 ITD 95/72 TTJ691 (Mum.).
Delivery based transactions: - In respect of delivery-based transactions (purchase/sale) of stock/any commodity, the total value of sales should be considered as turnover provided the stock/ commodity is held as stock-in-trade.
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