Please clarify the treatment of Security Transaction Tax in Accounts if company invest its extra funds to share market whats the treatment of STT in books of accounts whether the same could be debited to profit and loss account or shown as a current assets.
23 February 2009
STT is allowed as business expenditure u/s 36(1)(xiv) if co is in business of shares. Ift trading of shares is an investment then STT is disallowed u/s 47(ii).
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