What will be Turnover under tax audit who is dealing in shares like trading. whether sale value of share or portion of profit ?
Milan Somani
(CA)
(1456 Points)
Replied 20 May 2009
sale value of shares + total of intraday(squared-up) transactions
Sandeep Keswani
(Tax Consultant)
(1064 Points)
Replied 20 May 2009
Mr. Milan is right. In case of Delivery based transactions, it will be the total amount Shares sold, while in case of Derivatives (futures and options), it will be the net profit or loss (i.e. squared up amount - irrespective of profit or loss). Therefore, even if there is profit from some Derivative trading and loss from others, both will be considered for arriving at Turnover, irrespective of the sign ( + or - )
CA Kingsley
(Audit Manager)
(470 Points)
Replied 20 May 2009
It is also interesting to note that if a person does only derivatives trading and if he incurs a loss, then there will be a NEGATIVE TURNOVER because of provosions of IT Act. IT has been held in a case. I dont remember
NANDLAL GUPTA
(PCC STUDENT)
(22 Points)
Replied 05 August 2009
WHAT IS COMPOSITION SCHEME?
WHAT IS HIGH SEAS PURCHASE AND SALES?
WHAT ARE THE DOCUMENTS NEED TO BE CHECKED IN CASE OF IMPORT AND EXPORT OF GOODS?
HOW IS CUSTOM DUTY CALCULATED?
HOW IS EXCISE DUTY IS CALCULATED?
WHAT ARE THE CRITERIA FOR A PERSON WHO IS DEALING IN SHARES FALL UNDER TAX AUDIT?
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