treatment of trading in commodities on different exchange
Querist : Anonymous
pl consider new cicular of recognise stock exchange of mcx exchange
1)i have stock of commodities and future sale against it
2)I sale commodities in future and than carray forward transactions till due dateoror squred up on same day for which i have no delevery
Q1. company "I" , which is engaged in trading of commodities on ncdx
1. Ans: Non Speculative business as trading transactions are supported by actual delivery.
2.,multicommodities exchange ,mcx exhange
2.Ans. Non Speculative business as it is a recognised stock exchange.
3 and purchase sale of commodities from farmer and industries
Non Speculative business as trading transactions are supported by actual delivery.
Q 1. 1)i have stock of commodities and future sale against it
Ans. In section 43(5) (a) : Non- Speculative business transaction.
2)i)I sale commodities in future and than carry forward transactions till due date, or
Keeping the position of Q No 1 in view
Non- Speculative business transaction.
ii) or squred up on same day for which i have no delevery
1. in MCX - Non Speculative
2. in unrecognised stock exchange or "Dabba" : Speculative
Ans. Since commodities are treated as Stock in Trade, which is out side the per view of
the definition of Capital Asset. Hence No capital gain will arise.
As regards speculative and non speculative business income, you may check the point wise replies published above.
Querist : Anonymous
Q1. company "I" , which is engaged in trading of commodities on ncdx
1. Ans: Non Speculative business as trading transactions are supported by actual delivery .
QUE :pl sepcify if not delevery base on ncdx and is it recognise stock exchange?
2)i)I sale commodities in future and than carry forward transactions till due date, or
Keeping the position of Q No 1 in view
Non- Speculative business transaction.
ii) or squred up on same day for which i have no delevery
1. in MCX - Non Speculative
LTd.
QUE: there are two other exchange of mcx like for spot transaction and currancy transaction.pl specify as per cicular word is MCX stock exchange
Ans. NCDX is not a recognised stock exchange to the best of my information.
Only Delivery Based Transactions in it will be treated as normal business transactions.
Non Delivery Transactions will result into speculation profit/loss.
Ans: MCX has been recently denied to grant
recognition for the purpose of other areas.
Hence transactions entered other than commodities futures may still be treated as speculative transactions provided these are not supported by related business & delivery.
Querist : Anonymous
mcx denied new exchange for securities but all transaction of spot,future and currency are non speculative transaction.i appreciate instance reply.
nimesh shah ca from ahmedabad.
any body has different view can reply.
MCX HAS BEEN NOTIFIED FOR THE PURPOSE OF SECTION 43(5) BUT THE SECTION 43(5) DOES NOT COVER TRANSACTIONS IN COMMODITY FUTURES
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