Trwatment of STT

This query is : Resolved

Ravi Kumar Rajgaria (Querist)
Follow

01 April 2009 What will be the treatment of STT and other charges paid to broker for purchase/sell of shares in the books of the company in the following situation?

1. If purchase/sell of shares treated as investment-
2. If purchase/sell of shares treated as trading-

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
Follow

01 April 2009 1. In case of Investment, no treatment but assessee will get benefit of 10(38) or 111A, as the case may be.

2. In case of trading, as per the amendent provision STT will be treated as business expenditure and will be deducted for computing N/P

Ravi Kumar Rajgaria

Ravi Kumar Rajgaria (Querist)
Follow

01 April 2009 If only shares purchased during the year then in the books of the company, STT and other charges will be added in the cost of the shares or will be treated as disallowable expenditure?

Upgrade to CAclubindia Pro. Subscribe Now!

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
Follow

01 April 2009 In Purchase case STT and other charges will be added in Cost of Shares only.

Sanjay Soni

Sanjay Soni (Expert)
Follow

02 April 2009 Other Charges will be added to the cost in both cases

STT will be adjustable against Income Tax liability for the gain from such trades in case of Trading and in case of Investment the STT will be added to the cost