conversion of stock in trade share in to investment

This query is : Resolved

hemant (Querist)
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01 September 2010 Hello
Experts
please guide me for the following

I have a query that one of the firm dealing in shares and security transfer its part of the stock of shares from stock in trade to investment. what is the accounting treatment whether it is consider as sales.
And what is the treatment from taxation point of view.

Please guide

Thanks

CA SMR

CA SMR (Expert)
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02 September 2010 In my opinion there should be a transfer entry from stock in trade to investment.The investment should be stated as per the requirement of AS 13.More opinion is solicited.