Can Assessee claim STT as an expenditure of business when he is having more then 1 business in A.Y. 2008-09 ?
devesh joshi (CA-Final CS-Professional) (54 Points)
06 January 2011Can Assessee claim STT as an expenditure of business when he is having more then 1 business in A.Y. 2008-09 ?
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 08 January 2011
STT alias Securities Transaction Tax can be claimed as expenditure only if the principal business income is "trading in securities"
Rajeev Kumar singh
(Article)
(36 Points)
Replied 13 January 2011
Yes it was applicable as rebate U/s88E in 2008-09
Sonam Bidasaria
(CA)
(770 Points)
Replied 14 January 2011
| Originally posted by : U S Sharma | ||
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STT alias Securities Transaction Tax can be claimed as expenditure only if the principal business income is "trading in securities" |
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It is not necessary that the principal business of the business should be "trading in securities". For claiming rebate under Sec 88E, there was only one requirement in Sec 88E which reads as under
"Where the total income of an assessee in a previous year includes any income, chargeable under the head "Progit & gains from Business and Profession" arising from taxable securities transactions, he shall be entitled to a deduction, from the amount of income-tax on such income"
Sonam Bidasaria
(CA)
(770 Points)
Replied 14 January 2011
Can Assessee claim STT as an expenditure of business when he is having more then 1 business in A.Y. 2008-09 ?
Sec 88(3) - No deduction under this section shall be allowed in, or after, the assessment year beginning on the 1st day of April, 2009.
Hence. for A.Y. 2008-09 deduction of STT can be claimed even if he is having more than one business.
CA Adithya Murali
(Senior Associate Analyst)
(119 Points)
Replied 08 February 2011
Section 36(1)(xv) allows claim of STT as business expenditure but subject to that being the business of the assessee
Suppose the assessee is a manufacturing entity and the sale of shares is just a one off transaction, then the expenses will have to be disallowed as the concerned transaction will go to capital gains chapter. To put itsimpler if such STT attributable to sale of stock then claim allowable
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