Securities transaction Tax

This query is : Resolved

SSA JI (Querist)
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19 June 2008 Whether STT Will Be Added IN the Cost Of Share purchased while entering its entry in the books of accounts and computing capital gain/loss on it ?

Same in case of sale of shares whether STT will be sustracted or not in the sales consideration while enterin it in the books of accounts and comuting capital gain on it ?

Please Tell me about this with reference to any case law ,ruling,concept, or logical thinking.and also about brokerage charges turnover charges and service tax included in the broker note and bill ?

CA Anand Sarda

CA Anand Sarda (Expert)
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19 June 2008 For Accounting Purpose the following entries should be passed.

For Purchase of shares

Shares A/c........Dr
Brokerage A/c.....Dr
STT A/c...........Dr
Turnover Charges A/c.Dr
To Brokers A/c

For Sale of Shares

Brokers A/c.......Dr
Brokerage A/c.....Dr
STT A/c...........Dr
Turnover Charges A/c.Dr
To Shares A/c